Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy

The Bitcoin price is up today, after a significant drop in the last 24 hours. The price surge comes on the back of Fed Chair Jerome Powell’s welcome remarks, in which he did not address monetary policy.

Bitcoin Climbs As Powell Fails To Comment On Economy

TradingView data shows that the flagship crypto has broken above the $123,000 psychological level, rising from an intraday low just below $122,000. This rise followed Fed Chair Jerome Powell’s welcome remarks at the Community Bank Conference, in which he didn’t comment on monetary policy.

As CoinGape reported, Bitcoin and the broader crypto market had dropped earlier as market participants awaited the Fed Chair’s speech. However, Powell failed to provide insights into the Fed’s next steps, especially regarding interest rates. As such, market participants likely viewed this as a positive, possibly contributing to today’s rebound following the overnight decline.

It is worth noting that U.S. jobless claims were due today, which would also have sparked volatility in the market. However, the report has been delayed due to the U.S. government shutdown. The Labor Department also didn’t release the weekly jobless claims due to the ongoing shutdown.

Meanwhile, as CoinGape reported, the FOMC minutes released yesterday provided some positives for Bitcoin and the broader crypto market. The minutes signaled a dovish shift for most Fed officials, who judged that it was appropriate to make further rate cuts by year-end.

Notably, the market’s anticipation of further Fed rate cuts is likely one of the reasons BTC has gained over 7% to start this month. The flagship crypto has, in the process, also surged to a new all-time high (ATH) just above $126,000.

CME FedWatch data shows that there is currently a 94.6% chance that the Fed will lower rates by 25 basis points (bps) at the October 29 meeting. The Fed is also likely to make another 25 bps cut at the December meeting.

Other Fed Officials Set To Talk Today

In addition to Jerome Powell, other Fed officials are scheduled to speak today and are likely to comment on monetary policy. One of them is Fed Governor Michael Barr, who will be speaking on the economic outlook.

Fed President Neel Kashkari will also be joining Barr, with both likely to further comment on the economic outlook. Notably, Kashkari is one of the Fed officials who remains cautious about rising inflation amid the push for lower rates.

San Francisco Fed President Mary Daly will also be speaking today at the Silicon Valley Directors Exchange. Unlike some other Fed officials, Daly has been more open to rate cuts to avoid stiffening the economy or causing a further slowdown.