"Dizzy, which one wants to raise the interest rate?"
Although the debt ceiling crisis is still lingering, Minneapolis Federal Reserve (Fed) President Neel Kashkari and St Louis Fed President James Bullard also agreed with other officials to consider more interest rate hikes.
It is well known that the debt ceiling agreement will have a positive effect on the price of Bitcoin (BTC) as the United States (US) Treasury may issue government bonds to restore balances lost during the banking crisis.
After Fed Chairman Jerome Powell's speech last week failed to provide a clear direction, many investors believe the US central bank will continue to raise interest rates as part of its aim to tackle inflation.
Plus Dallas Fed President Lorie Logan, Fed Governor Philip Jefferson, New York Fed President John Williams, Fed Board Governor Michelle Bowman and others who also agreed to raise interest rates further.
According to Bullard on May 22 yesterday, the central bank should raise interest rates twice this year while Kashkari intends to raise interest rates above 6% to curb inflation.
Also, veteran trader Peter Brandt predicts that BTC price will plunge below $26,800 and then $24,800 before making a horizontal move to surge higher, where he believes the digital asset can break through $40,000.
While whales and miners sold their respective BTC holdings on expectations that the price would fall due to lackluster macroeconomic conditions, the digital asset is now up 1.47% at $27,002 in the past 24 hours.
