As a researcher with extensive experience in financial markets and cryptocurrencies, I find Powell’s recent comments on interest rates to be a significant blow to Bitcoin bulls. The sudden shift in tone from the Fed chair, who earlier welcomed the cooler-than-expected US inflation data, has caused a substantial correction in Bitcoin’s price.
Following a significant surge in Bitcoin (BTC) pricing earlier today, Federal Reserve Chairman Jerome Powell delivered remarks that dampened the spirits of optimistic investors with his more aggressive tone.
As a researcher interpreting Powell’s remarks, I would say that according to him, the Federal Reserve does not have a set plan for reducing interest rates. Instead, they base their decisions on the economic data as it becomes available.
As an analyst, I would put it this way: On Wednesday, I observed that the Federal Reserve chose to maintain its key interest rate at its current level. This move aligned with the anticipated outcome based on market forecasts.
Earlier today, the price of Bitcoin rallied to nearly $70,000 due to
cooler-than-expected US inflation data.
The Fed has expressed satisfaction with the latest Consumer Price Index (CPI) figure, but according to Powell, it’s essential for him to reinforce assurances regarding inflation control.
Bitcoin’s price has retreated significantly from its previous highs following Fed Chair Jerome Powell’s hawkish remarks, now valued at $68,837 on the Bitstamp platform.
Despite the Federal Reserve indicating that they will likely only implement one interest rate reduction this year due to easing inflation, their communication on this matter remains somewhat unclear.
It’s important to mention that the market currently anticipates two more rate reductions of a quarter point each in the year 2024.
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2024-06-12 23:00