Bitcoin (BTC) Reaches New Heights Above $70,000 as President Joe Biden Expresses Hope for Rate Cuts
Given strong inflation figures, investors are still positive about Bitcoin, especially with the halving just around the horizon in 2024. Bitcoin is getting a lot of good press as a potential inflation hedge, according to analysts.
Strong selling pressure hit Wall Street and the cryptocurrency market as a whole shortly after the US Consumer Price Index data for March revealed higher-than-expected inflation of 3.5%. But President Joe Biden said hours later that he believes the Federal Reserve will still lower interest rates this year.
Several market experts had already anticipated that June would be the month of the initial rate decreases. But the Joe Biden administration also anticipates that rate decreases will occur in late 2024, based on the latest inflation figures. President Biden made the following remarks during a press conference with Japanese Prime Minister Kishida Fumino:
“I will continue to say that I expect a rate decrease before the end of the year. This might put things off by a month or more; I can’t say for sure. The Federal Reserve’s exact actions are unknown to us. But listen, inflation has dropped significantly.”
In light of the 2024 US Presidential Elections, Mr. Biden considers this a very important year. So, the US president is putting his re-election hopes on reducing inflation and guaranteeing interest rate decreases.
As a result, the Biden administration is still waiting for inflation to decline so the Federal Reserve can start cutting interest rates. President Biden also contacted businesses about maintaining high pricing during his State of the Union speech.
There was an immediate knee-jerk response, with the price of Bitcoin (BTC) falling to $67,000, after the release of the CPI inflation figures on Wednesday, April 10. But it bounced back within hours and is now trading for over $70,000 once more.
Given that the Bitcoin halving is only nine days away, it’s clear that speculators are ignoring inflation worries. The price of bitcoin has been quite stable in the last several weeks, hovering around $71,000. Darren Franceschini, a co-founder of Fideum, has said that the exceeding predictions in CPI data speak well for the future of Bitcoin.
Investors navigating the turbulent waters of increasing prices will find Bitcoin to be a great hedge due to its reputation as a stable hedge against inflation and its restricted supply. Furthermore, we must not forget about the forthcoming halving event. According to him, Bitcoin’s annual halving serves to highlight its scarcity while also generating a lot of interest and speculation.
