Bitcoin (BTC) Price Surged by $1,100 in 10 Minutes After Fed Chair Jerome Powell Shared Dovish Remarks
- WBOYOriginal
- 2024-08-24 03:26:09974browse
The price of Bitcoin (BTC) briefly traded above $62,000, though it later retraced as the broader crypto market reclaimed some of the initial gains.
Bitcoin price surged by $1,100 in just 10 minutes after Federal Reserve Chair Jerome Powell shared dovish remarks during his Jackson Hole speech.
“The time has come for policy to adjust,” Powell said on Aug. 23 at Jackon Hole ahead of a Federal Reserve policy meeting in September. Powell’s remarks affirmed the Fed’s confidence in driving inflation to 2%, which could pave the way for rate cuts.
Bitcoin price briefly traded above $62,000, but later retraced as the broader crypto market reclaimed some of the initial gains. However, public consensus attributed Bitcoin’s brief surge to Powell’s comments.
Powell highlighted that incoming data will determine the extent of the Fed’s looser monetary policies. As crypto.news previously reported, slashed interest rates would likely be bullish for Bitcoin’s price and the broader cryptocurrency market.
Fed rate cut could boost Bitcoin market
Typically, lower funding rates lead to greater liquidity and a stronger appetite for risk assets, a category that often includes Bitcoin and other digital assets. With the U.S. stock market and gold trading at all-time highs, there’s speculation that capital seeking new profits could flow into Bitcoin.
Following Bitcoin’s decline to $49,000 after Black Monday earlier this month, the asset has been stuck in a range between $53,000 and $61,00 for several weeks.
Spot Bitcoin exchange-traded funds recorded mixed flows, but had attracted incoming capital for six consecutive days at press time.
Reduced supply thanks to April’s halving, which cut block rewards by 50%, ETF buying, and possible rate cuts may bolster Bitcoin’s bullish thesis. The asset last traded at $61,500 after the so-called test pump from Powell’s Jackson Hole speech.
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