Bitcoin capital inflow may rise with expected Fed rate pause in December
Bitcoin may witness increased capital inflow if the U.S. Federal Reserve opts to halt interest rate hikes at its forthcoming meeting on December 13, as suggested by analysts.
Bitfinex analysts posit that there is an anticipation of a Federal Reserve interest rate pause, echoing recent statements from Federal Reserve Governor Christopher Waller. The analysts at Bitfinex noted, "An interest rate pause could lead to more capital flowing into risk assets like bitcoin."
The analysis from Bitfinex draws from a recent speech by Governor Chris Waller, in which he remarked that the deceleration in the pace of the U.S. economy was a positive signal. Waller emphasized that the existing monetary policy aligns with the Federal Reserve's 2% inflation objective. In his speech on Tuesday, Waller stated, "Data for October indicated an easing in economic activity, and forecasts for the fourth quarter show the kind of moderation that is more in keeping with progress on lowering inflation."
