Bitcoin Price Pushes Higher as Fed’s Powell Signals Incoming Rate Cuts – BTC to $70K Soon?
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
The Bitcoin price surged to a new two-week high on Friday exceeding $62,000 following Fed Chair Jerome Powell’s Jackson Hole speech. During his address, Powell hinted at a potential series of rate cuts by the world’s largest central bank.
SUMMARY OF FED CHAIR POWELL'S REMARKS (8/23/24):
1. "The time has come for Fed policy to adjust"
2. Fed "will do everything" to support a strong labor market
3. Fed does not welcome further weakening of the labor market
4. Confidence has grown that inflation is heading to 2%…
This dovish stance triggered a reaction across various financial markets. US bond yields saw modest declines, and the US Dollar Index (DXY) hit fresh yearly lows under 101.00.
Meanwhile, US equity markets celebrated the potential for lower interest rates and a Fed prioritizing economic support over aggressive inflation control.
The S&P 500 climbed back above 5,600, within striking distance of its record highs.
Gold (XAUUSD) also approached its record highs above $2,500 per ounce, and cryptocurrencies were mostly in the green.
September’s Fed meeting is now expected to mark the start of a long await policy reversal after the aggressive rate hikes implemented throughout 2022 and 2023 to combat the post-pandemic surge in inflation.
As the Fed eases its policies, declining interest rates will likely increase liquidity in financial markets and the broader economy.
This shift will push investors towards riskier assets such as stocks, Bitcoin, and other cryptocurrencies, as lower risk-free interest rates (like those found in US
Read more on cryptonews.com
