Bitcoin Price (BTC) Slips on Hawkish Fed Comments

Bitcoin's price has seen a decline driven by recent comments from Federal Reserve officials. Kansas City Fed President Jeff Schmid expressed his dissent during a recent vote, arguing that inflation remains too high to warrant a rate cut. Despite the Fed's decision to lower rates, Schmid's comments emphasized the limitations of monetary policy in addressing structural changes in the labor market. Following these announcements, Bitcoin fell below $110,000, reflecting negative market sentiment. Fed Chair Jerome Powell also indicated that future rate cuts were uncertain, further contributing to market volatility. The overall reactions included a downturn in crypto assets and U.S. stocks, with the likelihood of a rate cut in December diminishing from previous expectations. Schmid's explanation underscored concerns about persistent inflation and its implications on economic conditions, suggesting that existing measures may not suffice for long-term stability.

Source 🔗