Bitcoin Slides as Fed Chair Hints at Steady Interest Rates

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.

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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.

Alexander Zdravkov