Bitcoin’s price fluctuated, recovering to around $93,300 after dipping below $92,000. Federal Reserve President Beth Hammack hinted at potential rate cuts. Meanwhile, Bitcoin ETFs have seen a surge of inflows, generating $1.8 billion recently as the market reacts to ongoing trade tensions and stock performance.
Bitcoin saw some turbulence on Thursday, bottoming out at $91,800 before stabilising above the $93,000 mark. As of recent reports, it’s trading around $93,300, showing little change over the last day. In the altcoin market, Ethereum fell by 1.8% to $1,760 while Solana enjoyed a slight upturn, rising by 1% to about $151.
In comments made during an interview on CNBC’s Squawk Box, Beth Hammack, who holds the position of President of the Federal Reserve Bank of Cleveland, indicated that the Federal Reserve may consider “preemptive” rate cuts, particularly as the impact of President Trump’s varying tariffs on the economy becomes clearer.
U.S. stock markets were on the rise, with the S&P 500 jumping 2% and the tech-heavy Nasdaq reaching a remarkable 2.6% increase, according to data from Yahoo Finance. Despite the gains, both indices remain behind their levels from April 2 when Trump announced significant tariffs on several countries. Interestingly, Bitcoin has shown some resilience with notable price increases during this period, despite earlier correlations with these tech stocks.
Concerns linger among economists regarding how these tariffs could inflate prices, yet recent data from the Consumer Price Index indicates a gentler trend in prices. Trump’s recent comments on Truth Social highlighted consumer prices trending downward, urging Fed Chair Jerome Powell to consider lowering rates, reflecting a concern that the Fed’s actions may not align with the improving price trends.
Market expectations seem to be shifting, with traders now estimating a 45% chance of the Fed implementing two rate cuts by July’s end, an uptick from 40% the previous day, as reported by CME FedWatch. Conversely, the likelihood of rates remaining steady has dropped to 9% from 12%.
Amidst fluctuating prices, Bitcoin ETFs are experiencing a surge in popularity, channeling $1.8 billion in just two days as highlighted by CoinGlass data. This marks the strongest two-day influx since early January. Lead research analyst Valentin Fournier commented that the disconnect between these significant ETF inflows and Bitcoin’s stagnation hints at institutional purchases being countered by profit realisations and a decline in retail market activity.
In other news, President Trump took a jab at China, implying they have not followed through on agreements concerning aircraft deals, amidst ongoing negotiations led by his administration. He expressed his frustrations in a recent post on Truth Social, urging Boeing to reconsider the situation regarding their unsold planes to China.
