🚀💰 Major Crypto Event: Fed Rate Cut Could Boost Bitcoin Price! 📈🔥
Bitcoin has been surging this week ahead of the much-anticipated inflation report from the U.S. Department of Labor. The report, released Wednesday morning, could very well transform the crypto market! Indeed, the $BTC surge seen on Tuesday gave way to an unexpected drop to $58,000 as soon as the news was revealed.
Economists had expected a softer inflation report, with prices rising just 0.2% on average, as predicted by a Dow Jones survey. Jim Baird, chief investment officer at Plante Moran, says inflation pressure has eased considerably, and inflation is now “almost a non-issue.” He expects the Fed to start easing monetary policy as early as the September meeting!
This decline in inflation gives the Fed plenty of room to lower interest rates this year, which could even start as early as September. Bitcoin, with its limited supply of 21 million units and its mechanism of reducing new units every four years, benefits directly from the drop in interest rates.
The price of BTC had surged before the announcement, but fell by 3% after the report was released. Bitcoin’s dynamics, driven by fixed supply and growing demand, show an inverse correlation with US dollar interest rates. The coming days could be decisive for the future of Bitcoin $BTC !
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