Bitcoin’s recent momentum appears to be waning after fresh U.S. inflation data and Federal Reserve Chair Jerome Powell’s remarks on the outlook for interest rates.
His comments, made just after the Fed’s second rate cut this year, suggest no rush for additional cuts, noting the economy’s positive trajectory and steady inflation monitoring.
In his Dallas speech, Powell indicated that despite recent rate reductions, further cuts aren’t imminent. The latest Producer Price Index (PPI) data came in at 2.4%, above forecasts, a signal of robust economic health. This cautious approach, focused on economic data, marks a departure from other central banks’ more aggressive rate cuts in recent years.
After reaching an all-time high of over $93,000, Bitcoin saw a notable pullback, dipping below $88,000 as investors took profits following Powell’s statement.
Major coins like Ethereum (ETH) and Binance Coin (BNB) also showed declines. With interest rates steadying, traditional assets may look more attractive, but the market reaction could be temporary, as optimism about crypto’s growth remains high.
According to new data shared by Bitcoin Magazine Pro, publicly traded companies now collectively hold over 844,822 BTC, valued at more than $100.5 billion, marking a historic milestone for institutional Bitcoin adoption.
Trump Media and Technology Group, the parent company of Truth Social, Truth+, and Truth.Fi, has officially disclosed that it now holds approximately $2 billion in Bitcoin and Bitcoin-related securities.
Michael Saylor’s Strategy has confirmed another major Bitcoin purchase, acquiring 6,220 BTC last week for approximately $739.8 million.
Bitcoin’s derivatives market is heating up, with open interest climbing back to $42 billion while funding rates continue to surge.