Powell’s July Statements Set Stage for Crypto Market Decisions
Federal Reserve Chair Jerome Powell's testimony on Capitol Hill highlighted the uncertainty in risk-asset markets, including cryptocurrencies. Key points include:
- Powell noted inflation has decreased but remains elevated.
- The Federal Open Market Committee (FOMC) will wait for more economic data before adjusting policies.
- The upcoming July 12 CPI release and July 19 payrolls report are crucial for market direction.
- Internal disagreements exist within the Fed regarding potential interest rate cuts, with some governors advocating for earlier cuts due to tariff-related price changes.
- Market reaction saw a drop in Treasury yields, with two-year yields at 3.806% and 10-year yields at 4.285%.
- Bitcoin rebounded to approximately $106,000, while Ethereum remained above $2,400.
- Traders are focused on the July CPI print for future market clarity.
As of now, Bitcoin is trading at $106,892. The next four weeks are pivotal for crypto markets, determining if they experience a breakout or a downturn.
