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Here’s why crypto prices are down

Here’s why crypto prices are down

In today’s The Market Report episode, Marcel Pechman discusses why crypto prices are declining due to Bitcoin (BTC) failing to break above $29,000. Additionally, he examines whether Jerome Powell is truthful about maintaining interest rates above 5%, while also weighing in on Warren Buffet’s prediction that the “incredible period” is coming to an end. Catch the show every Tuesday on the Cointelegraph Markets & Research YouTube channel.

Pechman delves into the cause of Bitcoin trading in a narrow range near $28,000, which is the conflict between policymakers and markets. The US Federal Reserve Chair, Jerome Powell, stated publicly that interest rates would not decrease this year, while risk-on assets markets have already priced in the opposite. The analyst also explains why the Fed increased interest rates above 5%, the apparent disconnection between the low unemployment rate and 42 million Americans who receive SNAP benefits, and the discussion to increase the government’s debt limit to $31.5 trillion.

Pechman highlights that Bitcoin could revisit sub-$20,000 levels if the government keeps its word to maintain interest rates above 5% until 2023. Regarding the memecoin invasion, he believes that the PEPE rally and subsequent correction represent a sector rotation rather than an altcoin season. The analyst also explains why futures markets are essential in creating balanced and more effective pricing for PEPE.

Next, Pechman discusses how Warren Buffett increased his investment holding company, Berkshire Hathaway’s cash position, notably when a recession could be approaching or weaker earnings in the next few quarters. The last part of The Market Report covers Bitcoin’s network fees surging above $10, causing Binance to suspend withdrawals. Pechman explains the Ordinals and Inscriptions effect on the Lightning Network and Bitcoin’s use case. Make sure not to miss it on the Cointelegraph Markets & Research YouTube channel.