After the Bitcoin (BTC) price rallied sharply higher earlier today, Federal Reserve Chair Jerome Powell threw a spanner in the works for bulls with hawkish comments.
Powell stated that the Fed had no commitment to a particular rate cut, stating that their current rate path is "data dependent."
The Fed on Wednesday kept its benchmark interest rate unchanged. The decision was in line with market expectations.
Earlier today, the price of Bitcoin rallied to nearly $70,000 due to cooler-than-expected US inflation data.
While the Fed has "welcomed" the most recent consumer price index (CPI) reading, Powell claims that he needs to bolster confidence on inflation.
Bitcoin has now pared a substantial portion of its recent gains due to Powell's hawkish comments, currently trading at $68,837 on the Bitstamp exchange.
The Fed has signaled that there would be only one rate cut this year despite cooling inflation, but its message is rather confusing.
However, it is worth noting that the market is still pricing in two quarter-point rate cuts in 2024.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team