Bitcoin trades below $61,000 as equity indices hit new highs
Bitcoin’s price slid below the $61,000 mark, despite equity indices hitting record highs.The S&P 500 reached an all-time high, increasing by 0.6% to 5,509.This comes as Federal Reserve Chair Jerome Powell stated that progress has been made on inflation.
Even as the SP 500 reaches an all-time high, Bitcoin BTC -3.21% has not mirrored the optimistic trend in equities.
Bitcoin’s price has continued to trade sideways and slid below the $61,000 mark during early morning trading on Wednesday. Its price decreased by around 2% in the past 24 hours, currently sitting at $60,500 at 5:15 a.m. ET, according to The Block’s price page . Nevertheless, the largest cryptocurrency by market cap is up 35% year-to-date after seeing its record high prices of over $73,000 in mid-March.
On the macro front, U.S. Federal Reserve Chair Jerome Powell made a recent statement that the central bank has made "quite a bit of progress" on inflation but needs more confidence before cutting rates. On Tuesday, Powell and European Central Bank (ECB) President Christine Lagarde discussed monetary policy at the ECB Forum on Central Banking in Sintra. "The labor market is still strong, and the disinflation trend shows signs of resuming. We have made quite a bit of progress on inflation, and we are getting back on disinflationary path," Powell said at the event in Portugal.
Global equities remain buoyant
The Fed's more dovish tones may have impacted equity markets. Futures ticked higher after this week's statement on inflation. Dow Jones Industrial Average futures increased 0.073% and SP 500 futures climbed 0.018% in pre-market trading.
By the close of trading on Tuesday, the SP 500 had increased by 0.6% to 5,509.01, surpassing its all-time high set two weeks ago. The Dow Jones Industrial Average rose by 0.4% to 39,331.85, and the Nasdaq Composite added 0.8% to 18,028.76, exceeding its own record set a day earlier.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP Outperforms Bitcoin and Major Stocks Over 10 Years but Numbers Are Easy to Misread
Federal Reserve Chair Waller: Number of Rate-Setting Meetings Will Be Reduced in Coming Years
Federal Reserve Chair Walsh pointed out that although eight meetings per year is "an appropriate number" for the FOMC, starting in 2027, one meeting will focus on macro monetary policy strategy without interest rate voting or policy statement issuance. In 2028, such strategic meetings will increase to two, and the number of policy-setting meetings will be reduced correspondingly to six. Walsh stated that this adjustment aims to provide the committee with space to consider more long-term "major issues."
The Federal Reserve holds rates steady as expected, with divisions resurfacing but fewer hawkish voices; Cook and two other voting members support a rate hike.
After three dissenting votes in July, there was once again division in this rate decision, with two of the 12 FOMC members opposed, indicating a decrease in hawkish dissent. Among the dissenters, Harker had already voted against holding rates steady in July due to his support for a rate hike, while Cook’s dissent is seen as a rebuke to Trump’s attempt to remove her. This statement changed the description of the economy from “steadily expanding” to “strong expansion,” continued to emphasize that inflation remains high, and newly added that accumulating information will help determine the policy stance needed to ensure inflation returns to target in a timely manner. According to the “New Fed News Agency,” the Fed’s decision to hold rates steady aims to gain time to assess whether further rate hikes are necessary.
Crypto prices
More
