“Discover how Bitcoin’s value climbed above $37.7K after Fed Governor Chris Waller hinted at potential rate cuts due to a possible decline in inflation. Explore the impact on traditional markets and the cryptocurrency landscape.”
Fed’s Waller Signals Possible Rate Cuts, Boosting Bitcoin to $37.7K
In a surprising turn of events, Bitcoin has surged beyond $37.7K in response to the unexpectedly dovish comments made by Federal Reserve Governor Chris Waller. Waller, known for his typically hawkish stance, hinted at the possibility of rate cuts if the current trend of declining inflation persists.
Speaking at an event in Washington, D.C., Waller expressed confidence in the Federal Reserve’s current policy stance, citing recent data indicating an economic slowdown and a consistent moderation in inflation. He noted that the pace of economic activity, as reflected in October data and forecasts for the remainder of the fourth quarter, suggests a notable easing.
During the Q&A session following his prepared remarks, Waller further elaborated that if the decline in inflation continues, a compelling case could be made for implementing rate cuts within the next few months. This unexpected shift in tone from the third-most hawkish member of the Federal Open Market Committee (FOMC) holds significant weight in financial circles.
Bitcoin, already on an upward trajectory, experienced a further 1% rally in response to Waller’s comments. This comes as his colleague, Michelle Bowman, expressed a contrary view at a separate event, stating her belief that rates may need to rise to address inflation concerns. As of the latest update, Bitcoin is valued at $37,700.
The impact of Waller’s dovish remarks extends beyond the cryptocurrency market, influencing traditional markets. The 10-year Treasury yield saw a decrease of four basis points to 4.35%, the dollar index dropped by 0.4%, and gold surged by 1.3%, reaching $2,038 per ounce. These reactions underscore the significance of Waller’s unexpected commentary on the broader financial landscape.