Bitcoin Gains Abstractive Momentum Due to Powell inaction on Monetary Policy
From trading at just above $121k to over $123k, Bitcoin is resilient today, climbing above $123k after hitting an intraday low of $122k, on the back of Powell avoiding to comment on monetary policy? Is Bitcoin shifting? It seems to be the case. It is trading above $123k currently. Thinking on your feet can frutsrate groupthink.
We almost confused on whether Powell would be willing to share some of his thoughts on the Bitcoin market or crypto space in general. It was definitely worth waiting for, as crypto market panicked first and is back in stasis for now. Interest rate policy limiting policies were povided? This was relief to note. It sure helped belt tightening policies.
It was rollercoaster day and Bitcoin market was rushed as is still volatile after USD jobless clams, which is always moving, and the lacking due to the US gowernment standoff, definetly tsaken the prpimerc report. Labor proposed an submission and the weekly scenario to the traders was very bad.
Along with other factors, the latest FOMC minutes contributed to a growing optimism about the crypto market. Most of the officials Fed remains rather dovish, with the minutes showing a worrying trend toward further rate cuts by the end of the year. This, more often than not, makes Bitcoin price stronger, primarily because lower interest rate translates to a move towards risk alternative assets.
Bitcoin price performance has already increased by more than 7 this month, and has recently poised itself above $125,000, setting a new all time high. Participation in the market is strongly convinced that the current, bullish sentiment will not end if monetary policy continues to ease.
CME FedWatch indicates that there is a 94.6% chance the Fed will lower interest rates by 25 bps during the October 29th meeting. Another 25 bps cut is expected for the December meeting, further solidifying the market’s tempered view regarding monetary policy.
In addition to Powell, more officials from the Federal Reserve are due to speak today and may shed new insights about the economy. Apart from Vice Chair Michael Barr, all eyes are on Neel Kashkari as well. While Kashkari is more cautious on inflation, there are more and more voices asking for rate cuts.
Mary Daly, the President of the San Francisco Fed, is also slotted to speak at the Silicon Valley Directors Exchange. She continues to hold on to a more accommodative approach, advocating for rate cuts for the purpose of fostering economic growth.
In the case of Bitcoin, the increase is indicative of the greater investor confidence of the risk assets that were set off by Powell’s silence and increasing hopes of rate cuts.
Conclusion
The latest Bitcoin growth further exemplifies the sensitivity of the cryptocurrency market to the actions of the Federal Reserve. Currently, traders appear to view Jerome Powell’s silence on monetary policy as a strong dovish signal, buoying optimism around risk assets.
Bitcoin’s bullish price action is likely to persist—along with dovish sentiment and expected rate cuts—though more comment from the Fed and the latest economic data will continue to drive volatility and market direction.
