The leading cryptocurrency turned upwards, and investors only want to see continued high-level closures. This could compensate for excessive selling losses in altcoins. At the time of writing, Powell’s statements were ongoing. Since his remarks focused on inflation and interest rates, the markets became active.
Why is Bitcoin Rising?
Amid rumors that the Fed might make a surprise cut at the end of this month, the latest inflation data came in positive. Although the PCE data was also positive, the PPI saw a 0.5% increase. Powell is now in a stronger position to consider a cut due to both the easing in employment and the lower inflation data over the past few months. In his latest statements, he said:
“The economy has performed quite well over the past few years. This year, the economy was expected to slow down and inflation to weaken, and something similar is happening. The second quarter’s inflation represents progress with three good values. Now that inflation has decreased, we will review both tasks. If we see unexpected weakness in the labor market, it will require us to respond. If the Fed waits for inflation to reach 2% to make a cut, it will have waited too long. Initially, inflation was driven by goods demand and seemed temporary; the Fed did not accurately predict how quickly the economy would normalize and remained more cautious. I have always thought there is a way to reduce inflation without the kind of labor market stress typically seen in past tightening cycles.”
