As an experienced financial analyst, I believe that Federal Reserve Governor Lisa Cook’s optimistic outlook on a soft landing for the US economy, with inflation continuing to fall without significant unemployment rise, aligns well with current market trends and expectations. The data indicates that rate cuts by the Federal Reserve are imminent, and this change in monetary policy is likely to trigger a major rally in stock markets and Bitcoin price.
Federal Reserve Governor Lisa Cook anticipates a soft descent for inflation and employment in the US economy, implying potential interest rate reductions from the Federal Reserve may commence soon. Cook expressed optimism that inflation will persistently decrease without causing a substantial increase in unemployment rates. The shift in monetary policy towards lower interest rates is projected to ignite a significant surge in stock market values and Bitcoin prices.
Fed Governor Lisa Cook Upbeat on Soft Landing
At the Australian Conference of Economists 2024, US Federal Reserve Governor Lisa Cook discussed monetary policy reactions to the pandemic, the recent surge and decline of inflation, and the present hurdles in monetary policy that are commonly encountered. Cook highlighted that the current data indicates a need for rate reductions from the Federal Reserve, bringing it in line with other central banks’ similar shifts in stance.
“I, along with many other experts, expect inflation to gradually reach its goal in the future without causing significant increases in unemployment.”
As a crypto investor, I’ve been closely following the latest developments from the Federal Reserve. According to Jerome Powell, the Chair of the Fed, the Federal Open Market Committee (FOMC) is now prioritizing labor market conditions due to the recent decrease in consumer price index (CPI), personal consumption expenditures (PCE), and producer price index (PPI) inflation data. In simpler terms, with inflation numbers cooling off, the FOMC is shifting its focus towards employment trends.
According to traders and Wall Street banks, there is a predicted 0.25 percentage point reduction in interest rates coming up in September. Additionally, the likelihood of this occurrence on September 18th, as per CME FedWatch, has risen significantly from 46% to 70% over the past month. The current data points towards two interest rate reductions taking place this year.
As an analyst, I would interpret the current consensus in the market as anticipating a decrease in the U.S. annual Consumer Price Index (CPI) inflation rate to 3.1% based on previous reports from CoinGape.
Bitcoin to Start Rallying After CPI
According to various indicators, Bitcoin’s price may be approaching its lowest point, and some market players have begun purchasing it in anticipation. If the Consumer Price Index (CPI) report turns out favorably, traders believe Bitcoin’s value could surpass $60,000.
Institutional investors globally have taken an interest in Bitcoin, according to a report by CoinShares, while financial advisor Robert Kiyosaki encourages individuals to invest in both Bitcoin and gold, following the lead of conventional investors.
In the United States, Bitcoin ETFs have experienced significant investment this week, attracting over $800 million collectively in the past four days. Notably, traditional investment firms like Fiduciary Alliance have been among the contributors, funneling resources into offerings such as the BlackRock Bitcoin Investment Trust and Grayscale Bitcoin Trust.
Based on historical trends, 10x Research anticipates that the price of Bitcoin may have hit its bottom and is forecasting a significant price increase following today’s release of the Consumer Price Index (CPI) data.
As a crypto investor, I had predicted that a rate cut could propel Bitcoin towards $60,000. Yesterday, Bitcoin surged up to $59,350 due to short-covering before the Consumer Price Index (CPI) release, thereby realizing my anticipation of a rally.
The price of Bitcoin hovers around $58,000 at present, reaching a peak of $59,350 within the last 24 hours. Despite a 1% decrease, the value remains above the previous low of $57,120. Additionally, there has been a 13% reduction in trading volume as investors anticipate crucial inflation figures. Activity in Bitcoin derivatives markets has also dwindled, with total BTC futures holding steady at $28.90 billion.
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2024-07-11 10:22