Bitcoin’s price dipped below a psychological threshold after the US Federal Reserve decided to keep interest rates in the current levels.
Powell talk, Bitcoin fall
The price of Bitcoin fell under $65,000 after the United States Federal Reserve announced it would keep interest rates unchanged.
On the last day of July, Bitcoin reached $64,549, marking the first time it had fallen below $65,000 since July 25.
It’s not a big deal tbh, but still a decline. Although it briefly recovered to $65,075, it quickly fell back and hasn’t crossed the $65,000 mark since.
The price movement came after the Federal Open Market Committee, the FOMC decided to maintain interest rates at 5.25% to 5.5%, which was widely anticipated, but somehow everyone hoped in a small cut.
Fed Chair Jerome Powell mentioned that the economy is growing at a solid pace with positive GDP growth and Private Domestic Final Purchases.
But he also noted that consumer spending growth has slowed, aligning with the Fed’s goals to reduce inflation.
“Inflation has eased substantially from a rate of 7% to 2.5%. We are strongly committed to returning inflation to our 2% target to support a strong economy that benefits everyone.”
This „benefits everyone” likely refers to them, central bankers, as inflation is stealing from the citizens, and giving the money to those whom are close to the money printer.
When a committee move your markets…
Before the announcement, markets didn’t expect, only hoped the FOMC to change rates until September.
Pseudonymous crypto commentator Seth highlighted that the relative strength index for Bitcoin, an indicator used to identify overbought and oversold conditions, is now oversold, which may present a good buying opportunity.
Seth noted in a July 31 X post that the FOMC often causes liquidation of retail traders who use excessive leverage.
September rain
While Fed Chair Powell hasn’t confirmed a rate cut in September, his optimism suggests it might be pretty possible.
The popular experts at The Kobeissi Letter noted that the Fed is waiting for the next two months of inflation data, and further declines in inflation could lead to a rate cut in September.
Mark Zandi, chief economist at Moody’s Analytics, expects the inflation data to align with the Fed’s forecast, making a September rate cut likely.
Zandi mentioned that global investors are positive about this possibility, with stocks rising and bond yields already falling.
