Bitcoin has once again captured investor attention, breaking past the $105,000 mark in light of expectations for US Fed interest rate cuts.
Powell's Signals Spark Market Reaction
Speaking at the Federal Reserve’s International Finance Division’s 75th anniversary event, Jerome Powell emphasized the importance of economic modeling in uncertain times. While he made no direct policy commitments, his comments on scenario analysis were interpreted by many as a soft signal that the Fed may consider rate cuts if current trends persist.
Macroeconomic Factors Fuel Growth
Recent consumer price index data shows inflation dipping to 2.3%, edging closer to the Fed’s target of 2%. Meanwhile, the unemployment rate remains stable around 4.2%, suggesting a healthy economy capable of accommodating looser monetary policy.
Technical Indicators Point to More Upside
From a technical perspective, Bitcoin's current chart structure supports further gains. The emergence of an 'Arc pattern,' often a precursor to major breakouts, has also caught analysts’ attention. If Bitcoin clears the 50-period moving average, a short-term rally could propel it to $120,000.
With Bitcoin hovering above $105,000, it remains in a strong position amid positive macroeconomic conditions. Breaking resistance may lead to new highs.
