Bitcoin Price Rallies as Fed Governor Suggests No Rate Hike
Bitcoin rallied by 5% in a day following Fed Governor Christopher Waller's comments that he would be inclined to support keeping interest rates unchanged during the September meeting. This move led to an uptick across the crypto market and net flows of $730.8 million into spot BTC ETFs, highlighting strong demand. The odds of a rate hike dropped from 57% to closer to 50%, according to the CME FedWatch Tool.
The impact of the Fed's decision on crypto is uncertain. Historically, days around FOMC rate decisions have been clear price pivot points for Bitcoin. Even if the Fed decides to hold interest rates steady, it could still have a bearish impact on crypto. Conversely, dovish signals from the Fed would increase the chances of a bullish scenario for crypto.
On September 3rd, Waller spoke at a Reuters event and indicated that he would be inclined to support keeping interest rates unchanged during the September meeting. This news led to a Bitcoin price drop to $77k last week following Federal Reserve Chair Kevin Warsh's hawkish speech at the Jackson Hole event.