Bitcoin Price (BTC) Slips on Hawkish Fed Comments

Bitcoin's price slipped as comments from Kansas City Fed President Jeff Schmid indicated concern over persistently high inflation. Schmid voted to hold rates steady despite the Fed's recent decision to cut rates, asserting that inflation remains above the Fed's 2% target and has not shown signs of significant decline. His commentary followed Fed Chairman Jerome Powell's unexpected remarks that cast doubt on the likelihood of further rate cuts this year. This cautious stance, amidst a modest recovery from previous declines, contributed to a decrease in BTC value, dropping below $110,000. Schmid emphasized that the Fed's ability to address structural changes in the labor market is limited, mirroring market reactions of increased uncertainty regarding future monetary policy and its impact on financial assets, including cryptocurrency.

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