Bitcoin Price Recovers on Biden’s Optimism the Fed Will Lower Rates ‘This Year’

Bitcoin has staged a mini-recovery after U.S. President Joe Biden expressed optimism over the possibilities of a price lower this yr.

Following yesterday’s hotter-than-hoped-for CPI report numbers, which confirmed inflation holding at 3.5% in March, Biden mentioned he anticipated to see a price lower earlier than the top of the yr.

Talking at a press convention in Japan, Biden mentioned, “I do stand by my prediction that earlier than the yr is out, there will be a price lower. This may increasingly delay it a month or so, I am unsure of that.”

He added that, “We do not know what the Fed goes to do for sure, however look, now we have dramatically decreased inflation from 9% down to shut to three%.”

Per knowledge from CoinGecko, the worth of Bitcoin is at the moment buying and selling at round $70,800, up 2.5% on the day, after dipping yesterday following the CPI report.

The broader crypto market rose in lockstep with Bitcoin, with the market cap of all cryptocurrencies up 2.3% to $2.77 trillion, and the highest 10 cryptocurrencies (barring stablecoins) all within the inexperienced over the previous 24 hours. Ethereum, the second-largest cryptocurrency, rose 1.9% to simply underneath $3,600.

Whereas inflation charges stay excessive, the U.S. Federal Reserve shies away from chopping federal rates of interest—which, in flip, tends to drive traders to conventional protected havens corresponding to treasury bonds, relatively than extra risky property corresponding to crypto and shares.

Yesterday additionally noticed a reversal of current Bitcoin ETF outflows, with $123.7 million getting into the exchange-traded merchandise. Grayscale’s GBTC noticed its lowest day of outflows, with simply $17.5 million exiting the fund, after the agency’s CEO Michael Sonnenshein claimed that outflows from GBTC have been approaching “equilibrium.”

Edited by Stacy Elliott.