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Bitcoin price rose to a daily peak of $61,578 a few minutes ago. The latest news is also quite good. The PPI data came in below expectations, and leading indicators are encouraging for Wednesday’s CPI data. If things go well, the boring period that has been ongoing for months may end in favor of the bulls for crypto.
Fed Statements
Fed member Bostic is making important statements as this article is being prepared. Bostic, who said that the interest rates are high enough, implied that he could wait a little longer for a cut but suggested that the market might force the institution to cut in September. The key points of his statement are as follows:
“The risk balance in the economy is normalizing again. I am hopeful that the economy will normalize in the next few months. Our interest stance is restrictive. I am ready to wait for the first rate cut, but this cut is approaching. If we have to raise rates again after cutting them, that would be really bad. The latest inflation data gives me more confidence that we can get back to 2%; I want to see a bit more data. We need to be sure that the inflation trend is real. If the economy develops as I expect, there will be a rate cut by the end of the year. Housing inflation has dropped significantly in the last few months. The unemployment rate is still historically low. We still have a strong and robust labor market. In my view, there will be no recession. We need to ensure that we do not go from a healthy labor market to a freezing cold one. The labor market may slow down, but this would not create significant concern. People are not telling me that there are too many layoffs; if this continues, we will be in a good place.”
According to FedWatch data, the market’s expectation for a cut is much stronger than it was a few months ago. This is extremely positive for cryptocurrencies. Considering the elections, September and November could be good for crypto. However, this expectation needs to start being priced in from the second half of August.
