Bitcoin

Bitcoin Price Dips Closer to $60k Amid Federal Reserve’s Deliberations on Maintaining Elevated Rates

According to a recent report from Cryptochronicle.xyz, Bitcoin’s price experienced a 2.5% decline to $60,300 on Friday as Federal Reserve officials discussed strategies to address persistent inflation in the United States. The digital asset had been trading at $63,400 at noon UTC before dropping below $61,000 within a few hours.

Coinglass data revealed that the volatility led to $175 million in liquidations in the past 24 hours, with the largest liquidation occurring during a Binance BTC/USDT trade worth $3.56 million. Federal Reserve officials have expressed varying opinions on the situation, with Dallas Fed President Lorie Logan suggesting that it may be premature to consider reducing interest rates.

Core PCE inflation, the Federal Reserve’s preferred inflation gauge, has not made significant progress towards the 2% target in recent months. Additionally, consumer inflation expectations have increased, with year-ahead expectations reaching 3.5% next May. Atlanta Fed President Raphael Bostic anticipates a potential 25 basis point reduction in interest rates by the end of the year, emphasizing that it will take time for inflation to decrease.

Lower interest rates are generally viewed as favorable for Bitcoin and stocks, as they provide investors with more affordable financing options for purchasing risk assets. This development underscores the interconnectedness of traditional financial markets and the cryptocurrency sector.

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