Bitcoin Breaks Out as Fed Comments Reduce Rate Hike Expectations
Bitcoin has broken out of its recent consolidation range after a series of dovish comments from Fed officials, reducing expectations for a rate hike in October.
The comments from Fed Vice Chair Jefferson and President of the New York Fed Williams have shifted market expectations from a 70% chance of a rate hike in October to around 25%.
This dovish repricing has provided support for Bitcoin, which has extended its gains this morning after breaking out of the 82,500 to 85,000 range.
The focus will remain on US-Iran developments and the Fed, with a breakthrough in negotiations potentially providing further support for Bitcoin and reducing expectations for aggressive Fed tightening.
The upcoming US NFP report will be closely watched, with a blockbuster report potentially raising the probabilities for an October hike and weighing on Bitcoin.
On a technical level, Bitcoin has bounced from the broken resistance-turned-support zone around 82,500, with buyers stepping in to position for a rally into the 98,000 level.