- Bitcoin climbed above $123,000 after Jerome Powell’s speech avoided monetary policy discussion, easing investor concern and boosting sentiment.
- FOMC minutes signaled a dovish stance with expectations for rate cuts, supporting Bitcoin’s recent seven percent monthly gain.
- Market optimism grew as investors priced in two potential Fed rate cuts this year, strengthening crypto prices amid delayed U.S. economic data.
Bitcoin regained strength on Thursday, climbing above the $123,000 mark after an early decline that saw it trade just below $122,000. TradingView data confirmed the rebound as investors responded positively to remarks from Federal Reserve Chair Jerome Powell, who refrained from commenting on monetary policy during the Community Bank Conference.
The absence of policy guidance from Powell appeared to calm market expectations, encouraging a rebound across the crypto sector. Market participants had anticipated insights into the Fed’s rate outlook, but his omission led to renewed optimism following Wednesday’s sell-off. Consequently, Bitcoin’s price gained momentum, reversing the prior session’s losses.
Influence of Fed Minutes and Rate Cut Expectations
Further support came from the Federal Open Market Committee (FOMC) minutes released earlier in the week. The document signaled a dovish sentiment among policymakers, with several officials favoring additional rate cuts before year-end. This expectation has fueled optimism among traders, helping Bitcoin rise over seven percent since the start of the month and reach a new all-time high of $126,000.
The release of U.S. jobless claims, originally scheduled for Thursday, was delayed due to the ongoing government shutdown. The absence of fresh labor data added uncertainty to market sentiment, prompting investors to look for direction from the Fed’s tone instead. Nevertheless, the crypto market showed resilience, interpreting Powell’s neutral stance as a positive signal.
Fed Officials to Offer Further Clues
Other Federal Reserve officials, including Governor Michael Barr and Minneapolis Fed President Neel Kashkari, are set to speak later today. Their remarks on the economic outlook could offer additional context on future rate decisions. San Francisco Fed President Mary Daly is also expected to comment, with her previous statements showing support for rate reductions to prevent an economic slowdown.
According to CME FedWatch data, traders currently assign a 94.6% probability of a 25-basis-point rate cut at the October 29 meeting. Another similar cut is likely in December. These expectations, coupled with Powell’s silence, have created a favorable environment for risk assets, pushing Bitcoin and the wider crypto market higher.
