Key Points:
- •Powell's speech indicates slower Fed balance-sheet actions, impacting crypto markets.
- •BTC and ETH surged, stabilizing crypto trade.
- •Fed's dovish stance boosts risk asset appeal.
Federal Reserve Chair Jerome Powell's speech at the NABE event signaled a dovish policy shift, impacting crypto markets with increased optimism for BTC and ETH on stability expectations.
Powell's hints toward slower balance-sheet runoff and potential rate cuts spurred immediate market reactions, driving BTC to $63,000 and boosting risk appetite in crypto sectors.
Powell's speech to the NABE in Philadelphia signaled a dovish shift in Fed policy, promoting crypto market stability.
Powell's comments led to increased optimism, bolstering BTC and ETH as markets respond to slower Fed interventions.
Powell Hints at Slower Fed Balance-Sheet Runoff
Jerome Powell addressed the National Association for Business Economics, revealing a dovish policy shift to potentially slow balance-sheet runoff. This move aims to avoid labor market-driven inflationary pressures.
"We see unmistakable cooling in labor market conditions and do not anticipate the labor market to contribute to inflationary pressure in the near term. The direction for policy is clear—timing and pace of rate cuts will depend on data and evolving conditions." - Jerome Powell, Chair, U.S. Federal Reserve
Crypto markets reacted favorably to Powell's stance, indicating optimism for potential rate cuts. Trading activity swelled, reflecting increased confidence among investors.
Bitcoin Surges Post-Powell Speech, Highlights Market Stability
Bitcoin and Ethereum saw immediate price increases. BTC surged past the $63,000 mark, highlighting renewed market stability and interest in crypto risk assets.
Financial markets anticipate a 25 bps rate cut, according to Kaiko Research, fueling a positive sentiment. No fresh institutional fund flows were linked directly to the announcement.
Expert Insights on Fed's Dovish Historical Impact
Past dovish pivots by the Fed led to risk asset rallies, with similar outcomes likely this time. Market trends show a consistent impact on BTC prices.
Market experts anticipate sustained growth in risk assets. Raoul Pal notes this shift means renewed interest from global investors, particularly in crypto holdings.