Crypto Executive Predicts Bitcoin Will Remain Stable Until Upcoming Federal Reserve Meeting

Distribute this article

Fed Chair Jerome Powell’s remarks at Sintra emphasized his recent message of taking a measured approach. Powell insisted that the Federal Reserve requires more certainty before implementing any rate cuts, brought attention to the fact that a 4% unemployment rate is “considerably low,” noted the emergence of disinflation, and expressed doubt about achieving 2% inflation both this year and the next.

Bitcoin (BTC) saw a 2.7% reduction within the previous day, relinquishing its stance above the $60,000 threshold throughout most of Wednesday. Furthermore, the short-term future seems challenging in the wake of Powell’s speech.

Ben Kurland, CEO of DYOR, suggested that while disinflation might usually be welcomed, the Fed’s requirement for stronger evidence prior to reducing rates signifies that the economy has yet to stabilize. “This ongoing unpredictability is expected to breed volatility in the cryptocurrency spaces,” he elaborated.

Significantly, Kurland observed that the Fed’s forecast of not hitting 2% inflation in the near future, coupled with a sizable and unsustainable budget deficit, raises alarms about long-term fiscal soundness.

Moreover, although a 4% unemployment rate is indicative of a robust job market, it also hints that the Federal Reserve is likely to sustain heightened interest rates for a longer duration, which typically suppresses investment in higher-risk assets such as cryptocurrencies.

“In essence, Powell’s prudent strategy implies that immediate rate reductions are not forthcoming, which could result in stagnant or descending movements in the cryptocurrency sector until the Fed convenes again to reevaluate the economic climate.”

Distribute this article