Bitcoin price hovers near the $43,000 level. Do bulls have plans to press BTC higher?
Bitcoin (BTC) encountered difficulties as its price struggled to hold the $43,000 support on Feb. 5. The setback came after U.S. Federal Reserve (Fed) Chair Powell pushed back on market expectations for interest rate cuts in the next few months. The ensuing lack of interest from leverage longs in BTC derivatives markets fueled speculation of a potential decline to $40,000.
In a Feb. 4, 60 Minutes interview, Federal Reserve chair Jerome Powell clarified that the central bank committee needs more assurance about the inflation rate nearing the 2% target before taking action. While Powell expressed positive emotions about the economy, stating it's “in a good place”, he mentioned the possibility of "three quarter-point rate cuts this year" based on official projections, depending on job market behavior. However, this contradicted investors’ expectations of interest rate cuts starting in March.
Adding to Bitcoin's price pressure was an essay from Minneapolis Fed President Neel Kashkari on Feb. 5, suggesting the monetary authority might take time before reducing interest rates. Kashkari argued that "the current stance of monetary policy may not be as tight" as believed, citing ongoing economic growth and low unemployment.
