Federal Reserve Making Analysts Bullish on Bitcoin?
Well, if so, that’d be the first real positive I’ve seen coming from the non-federal federal reserve
US Federal Reserve is making some analysts bullish on Bitcoin again
“the ADP Research Institute data released Wednesday also showed cracks in the ongoing U.S. economic recovery, revealing that employment across regional companies fell by 301,000 in December 2021, the highest since the early days of the COVID-19 pandemic.
The lower-than-anticipated data came a week after Fed Chair Jerome Powell’s press conference. He raised speculations about raising interest rates three times in 2022 to tame the rising U.S. inflation.
Powell’s hawkish turn pushed the price of Bitcoin down as the U.S. dollar strengthened.
Currently, U.S. rate futures hint at four to five rate hikes in 2022. James Bullard, president of the Fed’s St. Louis branch, further stoked the ‘tightening’ fears, stating earlier this week that five rises were ‘not too bad a bet.’
Nonetheless, his hawkish comments coincided with a recovery rally in the Bitcoin market as the dollar pared gains, prompting Alden and other analysts to say that the market may have overreacted to Powell’s tightening outlook.”
