Bitcoin is on the verge of reaching six figures again, even as worries about a market downturn persist. Altcoins are lagging behind, while liquidity remains strong around $106,000. Traders engaging in short positions in the futures market have been enjoying profits in recent days, driven by a notable increase in Bitcoin’s value following new economic data and remarks from the Federal Reserve.
What Did the Federal Reserve Say?
How Will Employment Data Impact Interest Rates?
Recent revisions of the Non-Farm Payroll data have shown a decrease for the previous year, with January’s figures falling well below expectations. This trend could ease pressures on employment, potentially prompting the Fed to implement more interest rate cuts. Notably, Fed member Neel Kashkari made significant comments that have shaped market expectations, with forecasts for rate reductions stretching into 2026.
Kashkari emphasized several key points:
- The rise in 10-year yields is not a cause for concern.
- The Fed anticipates bringing inflation down again.
- The economy remains robust and businesses are optimistic.
- If inflation subsides, there may be no reason to maintain current rates.
- Expectations indicate a potential slight drop in the policy rate by year-end.
In response to questions about tariff policies, Kashkari advised caution, stating, “We need to wait and see.” Concurrently, European Commission President Ursula von der Leyen indicated that the EU is ready to counter any new tariffs from Trump if imposed.
