"Alaaa don't worry, the price of BTC will drop a bit, maybe it will go back up after this."
The price of cryptocurrency king Bitcoin (BTC) weakened again to $68,935 shortly after Goldman Sachs Chairman and Chief Executive Officer (CEO) David Solomon predicted no more rate cuts by the Federal Reserve (Fed) this year.
Following BTC as a volatile digital asset that is very sensitive to macroeconomic changes, Solomon's statement has caused many investors to voice widespread uncertainty that has recently increased.
For Solomon, the relatively balanced economy causes no data to require a reduction in interest rates but allowing high interest rates will favor banks as they can get more income through credit channels that are advanced to investors.
Investments in Artificial Intelligence (AI) and Government spending have helped mitigate the impact of higher interest rates on the economy, Solomon further commented.
However, Solomon's projections could result in traditional assets continuing to compete with BTC in terms of yield and conservative investors may choose to stick with Treasury Bills and Bonds or other safer bets when interest rates are higher.
It is worth noting that one of the main catalysts for the BTC price breaking through almost $72,000 was due to strong demand through ETFs where there was a net inflow of about $1.2 billion over the last week.
As of this writing, BTC price has plunged by 0.81% to $69,544 in the last 24 hours with a market cap of over $1 trillion but is still up 5.30% over the last week.
