#bitcoin☀️ Above $69,000 as Inflation Shows Signs of Easing Ahead of Fed Meeting

U.S. Prices and Fed Policy Impact on Crypto: June 2024

In June, U.S. prices increased modestly, suggesting cooling inflation, which might lead the Federal Reserve to cut interest rates in September. This potential rate cut could boost prices in risk assets like #cryptocurrencies. According to the Commerce Department, consumer spending slowed slightly last month, indicating easing price pressures and a cooling labor market. These trends may bolster Fed officials' confidence that inflation is heading towards the central bank's 2% target.

The Fed's preferred inflation gauge rose 0.1% in June and 2.5% year-over-year. A potential interest rate cut could boost crypto prices by making borrowing cheaper. Analysts predict Bitcoin could reach $100,000 this year, with its current price at $69,200 (CoinGecko).

The Fed's next policy meeting is scheduled for July 30-31. The CME's FedWatch tool indicates a 95.5% chance of no rate cuts this month but shows an over 85% probability of a 25 basis point cut in September, with a 14% chance of a larger cut.

Former President #donaldtrump recently warned Fed Chairman Jerome Powell against politicizing rates ahead of the U.S. election, suggesting such actions could boost voter confidence in the Democrats. Trump indicated he would not remove Powell from his position before his term ended if he "was doing the right thing."

The upcoming U.S. election pressures the Fed to stay impartial. Some experts believe Bitcoin could benefit from a change in leadership. Rich Rosenblum of #GSR tweeted that Bitcoin might closely correlate with Trump's election probability over the next four months.

At the Bitcoin 2024 conference, Trump pledged to build a “strategic Bitcoin stockpile” and keep all U.S. government-held Bitcoin on home soil. While his speech had little immediate impact on Bitcoin's price, his crypto policy challenges Vice President Kamala Harris, whose policy lacks focus on the SEC overhaul and government-held Bitcoin.

Source - decrypt.co