Bitcoin (BTC) experienced a significant surge, gaining over $105,000, after Federal Reserve Chair Jerome Powell’s recent remarks hinted at a potential shift in monetary policy. Powell’s speech, delivered during the anniversary conference of the International Finance (IF) Division of the Federal Reserve, subtly signaled a growing inclination toward policy easing.
Despite no direct mention of rate cuts, Powell emphasized the importance of global data and modeling in shaping U.S. monetary decisions. Analysts and crypto investors closely examined his words, searching for clues amid growing signs of easing inflation and continued economic resilience.
Meanwhile, the Federal Reserve continues to resist mounting political pressure from President Trump, who has been vocal about his support for interest rate cuts. This ongoing tension has even sparked speculation about Powell’s possible resignation.
Bitcoin Rises Amid Weakened Dollar Signals in IF Models
On Monday, Bitcoin broke through the $105,000 mark, largely driven by heightened expectations that the Fed may pivot its monetary stance later this year. This rally came in the wake of Powell’s nuanced remarks, which reinforced the value of international financial modeling (IF) in evaluating risks and uncertainties faced by FOMC members ahead of each policy meeting.
Recent data from the Consumer Price Index (CPI) shows inflation has cooled to 2.3% annually — nearing the Fed’s 2% target. At the same time, the U.S. unemployment rate has held steady at 4.2%, suggesting the labor market remains resilient.
Conclusion
This combination of declining inflation and stable employment supports both sides of the Federal Reserve’s dual mandate. Kyle Chassé, a cryptocurrency market analyst, pointed to this dynamic as fuel for risk assets like Bitcoin. With the Fed’s global outlook seemingly aligning with broader market trends, investor optimism around digital assets continues to grow.
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