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Bitcoin Awaits CPI As Jerome Powell Says Fed Not in a Rush to Cut Interest Rates

Bitcoin Continues to Await CPI Data as Jerome Powell Provides Fed Update

The price of Bitcoin (BTC) reacted to remarks made by Federal Reserve chair Jerome Powell during his Semi-Annual Monetary Policy Report to the Senate Banking Committee. The address occurred just before the release of the US Consumer Price Index (CPI) inflation data, which is anticipated to significantly impact the market this week.

Bitcoin’s response to Powell’s testimony was only brief, as it briefly tested the $58,000 range before retracing back to around $57,000. Powell’s comments indicated that the Fed is not currently considering cutting interest rates, as more positive data is needed to bolster confidence and combat inflation. He emphasized the importance of sustainable inflation reaching the target of 2%.

Powell also acknowledged the strength of the labor market and the solid pace at which the economy is expanding. However, he highlighted the need to maintain a careful balance when assessing risks and making decisions related to rate adjustments.

Investors are now keeping a close eye on Thursday’s CPI data, as a decreased inflation rate would likely have a positive impact on Bitcoin prices.

Following the release of the first-quarter data, which also indicated a lack of confidence in the inflation trajectory, Tuesday’s cautious stance from the Fed reinforced doubts about the economy. This type of scenario often prompts investors to reconsider their strategies and seek assets that are not heavily influenced by central bank decisions.

Currently, technical indicators suggest that Bitcoin is attempting a recovery, but there is still a lack of conviction among bulls. The Relative Strength Index (RSI) is below 50, indicating this hesitancy. However, with the RSI showing higher lows and the $54,450 support holding, a potential recovery may be underway.

Despite the uncertainties, some traders and analysts remain optimistic about Bitcoin’s stability and potential for growth. The $54,000 range has been identified as a strong support floor, providing further hope for a sustained upward movement.