Cryptocurrency, Bitcoin, traded in small waves on Tuesday as the US Federal Reserve Governor Lael Brainard’s words. According to him, the central bank may think of reducing the size of its balance sheet at an intense rate.
“The [Federal Open Market Committee] will continue to tighten monetary policy gradually by implementing a series of interest rate hikes and starting to shrink the balance sheet at an accelerated pace as soon as our May meeting,” Brainard stated in his prepared remarks for a Minneapolis Fed session.“
Following the comments by Lael Brainard, BTC fell by 3% but later recovered during the New York trading day.
The fiercer emphasis on monetary tightening prompted market jitters as investors reduced their exposure to speculative assets. Stocks fell while the 10-year Treasury yield rose to its highest level since May 2019.
Following Twitter’s announcement that Tesla CEO Elon Musk will join the company’s board of directors, dogecoin (DOGE) rose as much as 17% in the past 24 hours.
Meanwhile, SHIB, another coin devoted to dogs, was up 4% on Tuesday vs. a 13% drop in WAVES and a flat performance in BTC during the same time frame.