Bitcoin stops looking so much at the Fed, to follow his own path.
The digital currency has its own factors that boost its upward contribution.
The market expected something, whatever. A clue, a wink, a loose phrase that allowed to project what the American Federal Reserve (Fed) will do with interest rates in the remainder of the year.
But Jerome Powell, president of the Fed, spoke and said nothing. Or, rather, he said a lot without saying anything. His speech was faint -hearted, lacking conviction, predictable and more typical of a Chatbot of artificial intelligence than the president of the most influential Central Bank in the world.
There was no rate cut, as expected. There were also signs that they approach. But neither do they approach. “Waiting and seeing” remains the monetary policy of the Fed. Powell again implied that decisions will be taken to meeting, and that everything depends on the evolution of inflation and employment. Phrases made, neutral, spent. At this point, listening to Powell is like listening to the same audiobook in loop.
And yet, Bitcoin goes up. While Powell spoke – or blushed his ambiguity with technical manners – the price of Bitcoin (BTC) began to climb. AND This Thursday quotes above $ 99,000at its highest level since the beginning of March. At times, the digital currency flirts with $ 100,000, a brand that has not played for more than two months.
So why does Bitcoin go up if there were no relevant ads from the Fed? Just because of that.
The key to understanding market behavior is many times, in silences. Powell did not announce cuts, but he didn’t close the door either.
The official did not harden the speech, did not harden the policy. In a context where a good part of investors feared a tougher posture – due to inflationary rebound in March and April – the simple fact that the Fed has not changed the tone was interpreted as a “not bad news.” And that, in a hungry market of optimism, is enough to reactivate capital flows to risk assets.
Bitcoin, who from approximately 2020 responds to the Fed monetary policy as if it were a barometer, benefits when money does not have a growing cost. A passive Fed, which observes without acting, can be as bullish as a Fed that lowers rates, provided that the market has already internalized the most pessimistic expectations.
In other words: What goes up to Bitcoin is not the enthusiasm for Powell’s words, but the fact that he has not been more threatening.
But it would be an unfair mistake to think that Bitcoin goes up only So Powell did not say. In the background, the market already begins to look beyond the Federal Reserve. Which It begins to take strength are the other uprisers who were latent, waiting for their moment.
Among them, one particularly important: rumors that the United States and China could bring positions to de -display the tariff war. This commercial tension has been one of the great sources of uncertainty in global markets. If both giants achieve some kind of understanding, even if partial, this could release a huge amount of capital towards risk assets, benefiting both actions and cryptocurrencies.
In parallel, the institutional adoption of Bitcoin continues to consolidate. Companies such as Metaplenet – to cryptootics nicknames “Japanese microstrategy” – they continue to accumulate BTC to increasingly aggressive rhythms. Traditional investment funds are opening Bitcoin -based products, and interest in BTC ETC in cash has not ceased. All this configures a solid base to justify the buying pressure observed in the last days.
And Bitcoin also has an internal logic. This logic is governed by its economic structure: limited emission, periodic reduction of the rhythm of production of new bitcoin (halving), gradual growth of demand and a story that shows that, after each halving, the price enters a new bullish phase.
The halving of April 2024 is already left behind. And if the pattern is repeated, in the next 7 months you could see a stage of strong appreciation for Bitcoin. Therefore, even when everything seems to be “in pause”, Bitcoin continues to advance.
What happened this week with Powell and Bitcoin is not anecdotal. It is a symbol. A sign that, perhaps, the explanatory power of the central bankers on the markets is beginning to be diluted. The old order, where everything revolved around the Fed, can be giving way to a new paradigm in which Bitcoin becomes increasingly independent of that story.
Because while Powell doubts, Bitcoin acts. While the Fed takes its time to decide, Bitcoin is already being adopted. And while monetary politicians are discussed between cutting or not rates, Bitcoin remains what was always: a finite, programmed, transparent and resistant digital reserve.
That is what the market is beginning to value. That is what makes, even after a boring and faint -hearted conference like this Wednesday, Bitcoin rises price. Not for what Powell said. But for what Bitcoin represents.
The road to new maximums is now clearer. Technically, Bitcoin has broken an important resistance around USD 97,000 and if it remains over that price with sufficient volume, the rally could accelerate.
Of course, it will not be a linear path. Volatility will continue to present, as always in Bitcoin. But the general scenario seems to bow again to the upward side.
In this context, Powell’s speech will be remembered, perhaps, as the exact moment in which Bitcoin stopped looking so much at the Fed … and began to follow his own path. A path that, for many (and I am one of them), has no roof.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author’s opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.