Bitcoin prices have surged significantly in recent days, reaching $101,700. This has occurred in the context of declining oil prices and expectations for market improvement.
Reasons for Cryptocurrency Surge
Since last Friday, two members of the Federal Reserve (Fed) hinted at the possibility of a rate cut in July. A third member, Goolsbee, also suggested that a rate cut would be beneficial for cryptocurrencies.
Oil Market Movements
Oil prices have started to decline, a situation attributed to Iran's advance notice to Qatar regarding upcoming attacks, leading to a reduction in concerns. Consequently, the oil market is showing signs of stabilization.
Comments from Fed Officials
Goolsbee commented on the impact of tariffs on the economy, stating:
> “Thus far, the effects of tariffs have not been as detrimental as feared. The impacts have been mitigated by the reduction of certain tariffs and exemptions. Tariffs have had a less abrupt impact compared to the past.”
> “If the uncertainty surrounding tariffs dissipates, we should continue with the rate cuts.”
The rise in Bitcoin prices and the decline in oil prices suggest a potential recovery in the market. Expectations of a rate cut from the Fed also play a significant role in this situation.
