Bitcoin tests $22,000 as Powell signals potential further Fed tightening

The Fed chair Jerome Powell, speaking before Congress, said there is a high likelihood of further tightening of monetary policy, according to CNBC.

Against this backdrop, the price of the first cryptocurrency fell to $21,927, but subsequently regained some ground.

“As I already mentioned, the latest economic data came in stronger than expected. This means the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said.

Nevertheless, he acknowledged that there are some signs of disinflation in core sectors of the market, excluding housing construction.

“We need to see lower inflation in this sector, and there is likely to be some easing in the conditions in the labor market,” he added.

Currently, Powell said, the Fed is ready to accelerate the pace of rate hikes.

Back on February 1, the U.S. Federal Reserve, for the eighth time in a row raised the target range for the federal funds rate by 25 basis points, to 4.50%-4.75%.