In this week’s episode of The Market Report, Marcel Pechman discusses why Bitcoin has been unable to break through the $29,000 level and why crypto prices have been falling. He also talks about Jerome Powell’s statement on interest rates and Warren Buffett’s bear play. Lastly, Pechman explains what caused Bitcoin network fees to surge above $10.
– Bitcoin has been trading in a narrow range near $28,000 due to the standoff between markets and policymakers as Jerome Powell stated that interest rates are unlikely to come down this year.
– Pechman explains why the Fed raised interest rates above 5% and the apparent disconnection between the low unemployment rate and the high number of North Americans who are SNAP recipients.
– Bitcoin could revisit sub-$20,000 levels if the government is not bluffing by keeping interest rates above 5% throughout 2023.
– Pechman thinks that the PEPE rally is merely a sector rotation, not an altcoin season by any means.
– Warren Buffett has increased his investment holding company Berkshire Hathaway’s cash position to its highest level in 18 months, indicating an incoming recession or weaker earnings in the next couple of quarters.
– Bitcoin network fees surged above $10, causing Binance to halt withdrawals. Pechman explains what caused this and its implications for Bitcoin’s use case in general.