• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: World Liberty Financial Accuses Exchange Of Token Manipulation, Justin Sun Blacklisted
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: World Liberty Financial Accuses Exchange Of Token Manipulation, Justin Sun Blacklisted

How Fed Has Spilled Cold Water Over Bitcoin’s $20K Target – For Now

Yashu Gola
by Yashu Gola
5 years ago
·
Posted in Bitcoin, Op-Ed
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Bitcoin (Symbol: BTCUSD) was going to hit $20,000 by the end of this year on inflation worries. Unfortunately, that now seems unlikely to happen.

It is visible in the manner the world’s leading cryptocurrency reacted to the Federal Reserve’s new approach to devising US monetary policy. Chair Jerome Powell surprised the safe-haven bulls Thursday morning by showing a more relaxed stance on inflation.

He pledged to keep the rate at an average of 2 percent over time but also promised to act if it turns excessive.

Bitcoin traders had expected more–a dramatic speech that points to a period of the consistently higher inflation rate. But many ignored that the Fed’s preferred target of 2 percent inflation rate always fell short of getting hit. Ever since the US central bank launched the policy–back in 2012, inflation rose at an average of 1.4 percent only.

That was also the period of the Fed’s longest expansion post an economic crisis of 2008, which ultimately failed to raise inflation. And now, even when the US central bank is ready to tolerate higher inflationary pressure, it has not provided a clue about whether or not it would continue its asset purchase program to support the economy.

Seesaw Price Moves

Bitcoin rose by more than 200 percent between March and now, only because of the Fed’s aggressive stimulus measures and lower interest rates.

While the central bank admits that it would keep rates near zero, a cast of doubt over its bond purchases have stalled the Bitcoin bull run that, as many expected, would take its price to $20,000 in 2020.

The uncertainty heightened during Mr. Powell’s speech on Thursday morning. Bitcoin rose 2.86 percent to near $11,600 within minutes after the Fed chair pledged to raise inflation. But the crypto fell 4.08 percent to $11,120 after Mr. Powell decided to act on higher-than-expected inflationary levels.

bitcoin, btcusd, cryptocurrency, xbtusd, btcusdt
Bitcoin rises and plunges in a row after Powell’s speech. Source: TradingView.com

Like Bitcoin, fellow safe-haven asset, gold, also logged a similar seesaw move during Mr. Powell’s keynote. The precious metal inched higher first, but then swang back to lower levels on anticipation of moderated inflation overshoots.

A $20K Bitcoin Will Take Time

US government bonds shed more light on how investors perceive the inflationary outlook. Yields on longer-term Treasury debt rose during the Thursday sessions, pointing to lower bond rates.

us bonds, yields, government debt
US 10-year bond slips after Powell’s speech. Source: TradingView.com

On the other hand, the prices of shorter-term US Treasury bonds rose higher while their yields plunged. The polar opposite moves showed that the Fed’s commitment to maintaining short-term interest rates near zero would support demand for Treasurys. At the same time, a higher inflation rate would keep long-term bonds less appealing.

Even the Fed didn’t vow to buy more longer-term debts. The central bank will likely speak more about it in the release of its monthly minutes on September 15.

As for Bitcoin, it expects to grow higher as US real yields fall in the medium-to-long term owing to higher inflation tolerance and lower interest rates. But the fact that the Fed will keep intervening whenever the inflation gets too high will also keep the cryptocurrency guessing about its upside continuation.

Bitcoin could still hit $20,000, its record high, but it appears 2020 is not the year for the said milestone.

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Follow

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Full Profile

Related Posts

Bitcoin

Corporate Bitcoin Allocation Climbs As Companies Invest 22% Of Profits: Study

18 hours ago
Bitcoin

Bitcoin Payments Now Accepted By Top UAE Developer For Real Estate

1 day ago
cours-or-nouveau-record-chute-btc

Record de l’or et chute du Bitcoin : que se passe-t-il ?

2 days ago
Metaplanet

Metaplanet Pushes Bitcoin Holdings Over $2 Billion With New Purchase

3 days ago
Bitcoin

Bitcoin Mining Can’t Keep Up: Companies Buying At Quadruple Pace – Report

3 days ago
Bitcoin

Bitcoin Treasury Race Heats Up As Dutch Firm Shoots For $23-M Launch

4 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • MemeCore七日暴漲 211%引爆熱度 Snorter Bot...

    2 hours ago
  • miner

    Is Bitcoin Investment Still Profitable? Use BTC Cloud...

    2 hours ago
  • miner

    ADA’s path to long-term success: Integrating with...

    14 hours ago
  • Bitget and Bitget Wallet Support Trading of Over 100...

    16 hours ago
  • miner

    XRP Price From a High of $3.65 to a Low of $2.72: How GMO...

    19 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.