2023-05-03
Bitcoin's
recent rally may face a temporary setback if Federal Reserve Chair Jerome
Powell does not signal a pause to the tightening cycle during the upcoming
interest rate decision announcement and press conference on Wednesday.
Traders
expect the central bank to raise rates one final time before ending the
tightening cycle, with rate cuts starting in July. However, if Powell does not
confirm the pause during his presser, the US dollar and Treasury yields may
bounce, which has historically been bearish for Bitcoin.
The lack of conviction from Powell in signaling the pivot may disappoint markets, triggering a recovery in the greenback.
Ref: Traders see the Fed cutting rates from July. (Pepperstone) (Pepperstone/Fed funds futures)
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