Representatives of the U.S. Federal Reserve System (Fed) are closely watching cryptocurrencies amid heightened market volatility, said Fed chair Jerome Powell.
\n\n
According to him, the Fed has not yet seen any significant impact of the situation on the Bitcoin market’s macroeconomy.
\n\n
At the same time, Powell says the cryptocurrency industry needs a “better regulatory framework”:
\n\n
\”Many products in the digital finance sector are, in some sense, similar to products that exist in the banking system or in the capital markets, but they are not regulated in the same way. We must address this.\”
\n\n
In its June 14-15 meeting, the Fed raised the federal funds rate by 75 basis points to a range of 1.5-1.75%.
\n\n
A few days after this, the price of bitcoin plunged, but later recovered somewhat. At the time of writing, the leading cryptocurrency was trading around $20,300.
\n\n
\n\n
Analysts at Arcane Research say that Bitcoin’s price could continue to fall as low as $10,350.
\n\n
Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.