Cryptocurrency prices dropped this week, but Bitcoin managed to rebound to $69,000 after announcements from the Federal Reserve. Analysts emphasize the importance of Bitcoin closing above this level to potentially reach higher peaks before the halving.
Cryptocurrencies had a rough week as prices took a hit, affecting altcoins as well. However, in a recent turn of events aligning with statements from the Federal Reserve, Bitcoin surged back up to $69,000. To set the stage for even higher peaks before the halving, it’s important to observe Bitcoin closing above this key $69,000 mark.
Impact of Federal Reserve Statements on Crypto Markets
The crypto community eagerly anticipated statements from Federal Reserve members ahead of data release on Friday, as these remarks directly influence the crypto markets. Three Fed members made significant comments at the time of writing.
Loretta Mester, one of the Fed members, raised her long-term neutral estimate from 2.5% to 3% last month. She expressed the need for more data to assess inflation and suggested considering lowering interest rates as inflation falls. Mester expects to be in a position to lower interest rates later in the year, although she doesn’t anticipate inflation reaching last year’s pace.
Neel Kashkari, another Fed member, stated that if the economy remains strong, there’s no reason to halt the balance sheet plan when lowering interest rates. He highlighted the possibility that if inflation stalls, the Fed may not cut rates this year.
Austan Goolsbee, also from the Fed, took a more moderate stance but emphasized the importance of inflation trends. Goolsbee had anticipated two rate cuts this year but is now reconsidering if inflation continues to move sideways. He emphasized the need for convincing evidence that inflation is moving toward the 2% target and pointed out housing inflation as a crucial indicator for the near future. If housing inflation doesn’t drop, bringing inflation back to 2% could be challenging, potentially affecting employment trends.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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