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FED Chairman Emphasizes The Need to Increase Interest Rates: Can Bitcoin Rise To $35K?

  • Federal Reserve Chair Jerome Powell reiterates the need for interest rate increases following a mid-year pause in June.
  • Traders preparing for the release of non-farm payrolls and unemployment rate data today anticipate a tightening of the US market with a projected decline of 225,000 jobs and a 3.6% unemployment rate.
  • The macro outlook for Bitcoin remains challenging due to rapidly rising treasury bond yields and volatility returning to the cryptocurrency and stock markets.

Federal Reserve Chair Jerome Powell emphasized the necessity of an interest rate hike following a pause in June; what is the current outlook for Bitcoin?

Federal Reserve Chair Jerome Powell emphasizes the necessity of an interest rate hike

fed-bitcoin

Federal Reserve Chair Jerome Powell highlights the necessity for interest rate increases following a mid-year pause in June. A strong labor market and inflation persisting above the FOMC target rate compel the Federal Reserve to continue its rate hike strategy.

On Thursday, the ADP employment report caused a sudden drop in the price of Bitcoin, Ethereum, and other altcoins. Traders now anticipate the release of non-farm payrolls and unemployment rate data, with a projected decline of 225,000 jobs and a 3.6% unemployment rate, tightening the US market according to market expectations.

Meanwhile, European Central Bank President Christine Lagarde states that inflation remains above the 2% target rate and that the ECB may continue with interest rate increases in 2024. Currently, the inflation rate in the EU stands at 5.5%. Additionally, Lagarde mentions the potential acceleration of economic growth in the region in 2024-2025, with an estimated growth rate of around 0.9% in 2023.

The macro outlook for Bitcoin remains challenging due to rapidly rising treasury bond yields and volatility returning to the cryptocurrency and stock markets. CME FedWatch shows a 90% probability of a 25 basis point interest rate hike during the July FOMC meeting.

Will the Bitcoin price reach $35,000?

The crypto market declined after the release of US labor market data on Thursday, and analysts expect a similar movement on Friday, citing the tightness of the US labor market. JPMorgan argues that the approval of a spot Bitcoin ETF by the SEC would not provide significant benefits to the crypto market, but BlackRock CEO Larry Fink believes that a spot Bitcoin ETF could democratize crypto and revolutionize finance.

Bitcoin ETF applicants will meet with the US SEC next week to discuss approval, necessary rule changes, and other significant matters.

Crypto analyst Michael van de Poppe suggests that there could be a short-term correction after Bitcoin dominance reaches historically high levels, which could lead to a recovery in altcoins. In fact, two weeks of consecutive inflows into crypto assets and the monthly MACD turning green indicate a positive outlook for the Bitcoin price.

BTC is currently trading at $30,150, with the lowest and highest values in the past 24 hours being $29,777 and $31,269, respectively. The ETH price is currently at $1,862.

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Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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