### The US FED slowed the rate of increase in the Federal Funding rate by increasing it by .5%. US Federal Reserve Chairman Jerome Powell sounded cautiously optimistic about inflation slowing down after a historical four consecutive .75% increases. 

Cryptocurrency users and investors have become keenly aware of the US Federal Funding rate during this bear market. The last bull market where the bitcoin price rallied from the $3,000 price level all the way to almost $70,000 was characterized by monetary easing, with the US Fed cutting rates and purchasing assets. 

As cryptocurrencies entered this present bear market, the US Fed was doing the opposite: increasing the Federal Funding rate and reducing the assets in its balance sheet. Generally, money was flowing out of the economy and risk assets took a beating. The price of bitcoin has been retreating and is presently at the $17,000 level. 

The US Fed increased rates at the most rapid pace in history: four consecutive rate hikes of .75%. Notably after each rate hike, the bitcoin price moved to a lower range. Equities and other risk assets were also significantly and negatively affected. 

Thus, it is widely believed that bitcoin and other cryptocurrencies will not be able to reverse the downward trend in their prices until the negative pressure brought by quantitative tightening by the US Fed pivots towards quantitative easing. 

However, it appears that a shift to quantitative easing is a long way off. Fed Chair Powell reiterated the goal of attaining price stability, and specifically the target of 2% inflation. Inflation in the United States slowed to a pace of 7.1%. 

While markets breathed a sigh of relief since it appears that the rapid rise in inflation has abated, there still appears to be a long way to go before the United States Federal Reserve achieves its goal of 2%. 

The bitcoin price has, in the past, appeared to move up and down in a four year boom and bust cycle. This time though, there is a different factor at play. 

Bitcoin has not yet experienced the current market condition that the US Fed is trying to address: rapidly rising inflation and a looming recession. There are fears that bitcoin might be headed for a "supercycle" extended bear market. 

At present the cryptocurrency bear market is already the longest one on record. Do you think the bitcoin price will still follow the four year cycle? Let us know what you think in the comment section below. 

The US FED slowed the rate of increase in the Federal Funding rate by increasing it by .5%. US Federal Reserve Chairman Jerome Powell sounded cautiously optimistic about inflation slowing down after a historical four consecutive .75% increases. 

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