KEY POINTS:
- Bitcoin jumped 10% from Monday lows.
- Prices gravitate near $60,000 per coin.
- Powel speech spurs buying momentum.
Risk-hungry crypto traders scooped up discounted Bitcoin as prices jumped about $6,000 from Monday’s lows.
- Bitcoin prices BTCUSD are back to the upside early Wednesday, riding on a three-day gain of 10%. The orange coin was last seen making its way toward the $60,000 milestone, rising from a Monday low of $54,000 per token. What’s behind the rally? Markets may have already realized that the expected payouts by Mt. Gox might not be that scary. The failed exchange had recovered about 140,000 BTC, which are pending release to users.
- Moving on, Federal Reserve Chair Jay Powell appeared before Congress on Tuesday and spoke lightly. He noted that maintaining interest rates higher for longer might hurt economic growth. And while Fed officials are keen on cutting rates, they need “more good data,” i.e., lower inflation. Cuts to interest rates are generally favorable to risk assets. What’s riskier than Bitcoin? Hardly anything.
- Bitcoin’s gains, analysts say, were likely driven by Powell’s warm comments over rate cuts. Still, the $60,000 mark is ways away from the cryptocurrency’s all-time record of more than $73,000. Looking ahead, crypto traders are eyeing the latest on inflation due Thursday. America’s consumer prices are predicted to continue sliding in June with economists looking for inflation growth of 3.1%, lower than May’s 3.3%.
