Bitcoin price was turbulent during the highly anticipated post-FOMC press conference on Wednesday evening.

Bitcoin plunged $1,000 as Federal Reserve Chairman Jerome Powell reworked plans to raise the federal funds rate next March.

In his pre-conference speech, Powell told that, under current circumstances, many of the workforce are unable to report on their activities.

It is expected that the effects of the “Omicron” virus wave will be short, in addition to its negative economic effects.

The chairman noted that inflation was well above the Fed’s 2% target rate, and blamed supply and demand imbalances.

Earlier this month, the December CPI hit a record 7%, sending the price of Bitcoin higher.

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Citing a tight labor market, Powell concluded that the economy no longer needed to sustainably support monetary policy.

As such, plans to raise interest rates and lower the Fed’s balance sheet in March remain in effect.

Powell also stated:

The Fed will move away from highly accommodative policy to a much less accommodative policy that may be inappropriate at its inception.

Earlier yesterday, BitMEX co-founder Arthur Hayes predicted that the Fed is a disingenuous one, and can’t actually raise rates without hurting the market.

Powell, however, disagreed, saying there was plenty of time to raise interest rates.

Cryptocurrency and stock markets both fell after Powell’s speech.

Bitcoin price has dropped from over $38,200 at 2:40pm ET to under $37,000 at the time of writing.

Read:After the total market capitalization of the cryptocurrency market reached $1 trillion… what next?

Meanwhile, the Nasdaq and Standard & Poor’s 500 indexes fell 0.5% over the same period.

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