Bitcoin Price Dips as Powell’s Comments Disappoint Market Expectations
The Bitcoin (BTC) Price is set to end Monday with losses of close to 3%. The Market is set to end the month on a sour note thanks to not as dovish as hoped-for commentary from US Federal Reserve Chairman Jerome Powell and jitters about Japan’s hawkish incoming PM.
In his speech, Powell indicated a preference towards cutting interest rates steadily at 25bps intervals going forward, rather than a larger 50bps cut that some Market participants had anticipated.
The Federal Reserve had previously cut interest rates by 50bps earlier this month, the first rate cut since 2020, with plans to continue lowering rates over the next year to maintain economic balance.
Powell’s Remarks Fall Short of Market Expectations
Despite speculations last week that the Fed might implement another 50bps rate cut in November, Powell’s recent remarks have disappointed the Market, leading to a negative reaction in asset prices.
Bitcoin, which was trading around its 200-day moving average, also faced downward pressure following the news of the incoming Japanese PM who is expected to support policy normalization despite initial statements favoring loose monetary policy.
The Bitcoin Price had experienced a strong rally, reaching as high as $66,000 last week before retracing slightly amid the Market uncertainties.
Currently trading in the upper $63,700s, Bitcoin is down over 4% from its recent highs but remains resilient amidst Market fluctuations.
October Outlook for Bitcoin: "Uptober" on the Horizon?
Despite the end-of-month stumble, Bitcoin is poised to conclude September with an 8% gain, defying the historical bearish trend associated with this month.
The positive performance in September sets a bullish tone for October, commonly referred to as "Uptober" due to Bitcoin's tendency to thrive during this period.
Historical Data from bitcoinmonthlyreturn.com shows an average return of -4.4% in September compared to a robust 27% average return in October, hinting at the potential for a bullish run in the coming month.
While concerns over pre-US election uncertainties loom, factors such as global central bank easing, delayed post-Bitcoin halving effects, and resolution of election uncertainties could serve as catalysts for Bitcoin's upward trajectory.
One wildcard in this scenario is the performance of the US Economy, which could impact Market sentiments and trigger either a rally or a downturn in Bitcoin prices. Key economic indicators, including US ISM PMI Data and the September jobs report, will be crucial in shaping Market dynamics in the near future.
With the possibility of reaching $70,000 looming, Bitcoin's Price action is anticipated to be closely monitored by investors and traders in the upcoming weeks.
For more insights and updates on the latest cryptocurrency Market trends, stay tuned to Cryptonews for comprehensive coverage and expert analysis.
