Bitcoin Gains Ground Alongside Wall Street Ahead of Powell’s Testimony
Bitcoin has experienced an upward trend in midday trading, coinciding with the performance of Wall Street. This comes ahead of Federal Reserve Chair Jerome Powell’s testimony on U.S. monetary policy before the Senate Banking Committee.
The largest cryptocurrency by market capitalization, Bitcoin, has remained above the $67,000 mark and increased by approximately 1% in the past 24 hours. As of 11:30 a.m. ET, it was being traded at $67,199 according to The Block’s Price Page.
Wall Street Indices Perform Well
U.S. indices have shown positive movement on Thursday, with major equities recovering from earlier losses. Over the past 24 hours, the S&P 500 increased by 0.88%, the Dow Jones Industrial Average rose by 0.41%, and the Nasdaq Composite saw a gain of 1.38%, according to TradingView data.
Fed Support for Risk Assets
Federal Reserve officials such as Christopher Waller and Jerome Powell have provided support for risk assets by affirming that rate cuts are still expected this year. This has contributed to a decline in the U.S. dollar and even led to record-breaking gold prices, as noted in a market report by QCP Capital analysts.
Powell’s Testimony on Interest Rates
Anticipation of Fed Rate Cuts
Jerome Powell is testifying again on Capitol Hill about interest-rate policy, and whether or not there will be a rate cut by the U.S. central bank depends on cooling inflation data over the next few months, according to analysts.
“The Fed just needs a few more months of similar inflation data as prior months to start cutting rates this year. They stuck to three rate cuts as a consensus, but the Fed funds futures market now has four rate cuts priced in by December 2024,” said Nansen Principle Research Analyst Aurelie Barthere.
The CME FedWatch tool indicates a 97% chance that the Fed funds rate will remain at its current target range of 5.25%–5.50% this month. However, interest rate traders’ forecasts for the June Federal Open Market Committee (FOMC) meeting indicate a 56.9% probability of a rate cut in that month.
Positive Movement in Cryptocurrency Market
The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has experienced a 2.85% increase to reach 147.78 in the past 24 hours.
🔥 Hot Take: Bitcoin Rises Alongside Wall Street Before Powell’s Testimony 🔥
Bitcoin has gained ground and is performing well alongside Wall Street as investors await Federal Reserve Chair Jerome Powell’s testimony on U.S. monetary policy before the Senate Banking Committee. Here are the key takeaways:
- Bitcoin remains above the $67,000 mark and increased by approximately 1% in the past 24 hours.
- U.S. indices have shown positive movement, with the S&P 500 increasing by 0.88%, the Dow Jones Industrial Average rising by 0.41%, and the Nasdaq Composite gaining 1.38%.
- Fed officials have provided support for risk assets by affirming that rate cuts are still expected this year, leading to a decline in the U.S. dollar and record-breaking gold prices.
- Powell’s testimony on interest rates will determine whether there will be a rate cut by the U.S. central bank, depending on cooling inflation data over the next few months.
- The CME FedWatch tool indicates a 97% chance of the Fed funds rate remaining unchanged this month, but interest rate traders’ forecasts for the June FOMC meeting suggest a 56.9% probability of a rate cut.
- The cryptocurrency market has also experienced positive movement, with the GM 30 Index increasing by 2.85% in the past 24 hours.
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