Bitcoin (BTC) Dips $22,000 as Fed Chair Says Interest Rates Will Likely Be Higher

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Bitcoin (BTC) Dips $22,000 as Fed Chair Says Interest Rates Will Likely Be Higher
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Cryptocurrency investors and the crypto market are closely watching for comments on inflation, interest rates, and regulatory pressure

Powell may withhold judgment on the matter due to upcoming jobs data and another month of inflation data.

The Fed chair is also expected to face questions on banking regulation, with Democrats urging the Fed to tighten capital standards for the largest institutions, while Republicans seek a looser treatment.Bitcoin's massive underperformance in 2022. Year-to-date, however, Bitcoin has outperformed the tech-heavy NASDAQ, as well as the S&P 500 and Dow Jones indices. Bitcoin's year-to-date return stood at roughly 30%, far exceeding the performance of the major stock indices and gold.

The cryptocurrency's most recent underwhelming performance has been linked to concerns about growing regulatory pressure, the implosion of crypto-friendly bank Silvergate Capital, and increasing investor concerns about inflation and interest rates.

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