Bitcoin rises as Fed Chair signals rate cut
The valuation of Bitcoin enjoyed an uptick on Friday, following remarks by Federal Reserve Chair Jerome Powell hinting at potential rate reductions in the near future. This came as a welcome sign that the Federal Reserve is satisfied with the declining rate of inflation and is now turning its focus towards the emerging signs of fragility in the job market.
Powell commented that they are set on a path, and the determination of rate cuts' timing and magnitude will hinge on fresh data, shifting forecasts, and the balance of risks.
In reaction to Powell's statements, Bitcoin's value saw a 1.8% rise to $61,500 within the last 24 hours, momentarily surpassing the $62,000 mark. Concurrently, the prices of Ethereum and Solana witnessed increases of 2.7% and 2.1%, reaching $2,675 and $145, respectively.
At this junction, market sentiment is strongly in favor of the Fed loosening its grip on its stringent inflation control measures, which have seen the benchmark interest rate remain unchanged since July 2023. Present forecasts by traders indicate a 32% likelihood of a 0.50% rate reduction by the Fed in September, with a 67% probability of a 0.25% cut, as per the CME Fedwatch data.
