Bitcoin’s price dipped to $91,800 but stabilised around $93,300, amid rising U.S. stock indexes spurred by rate cut optimism. Beth Hammack of the Federal Reserve Bank hinted at potential preemptive rate cuts. Significant inflows to Bitcoin ETFs totalled $1.8 billion recently, while traders reassess rate cut predictions from the Fed, with pressure from Trump on lowering rates.
Bitcoin’s price saw a decline hitting a low of $91,800 before stabilising above $93,000 on Thursday. Amidst this fluctuation, U.S. stocks were on the rise, buoyed by increasing optimism over potential rate cuts and comments from President Trump about trade dynamics. Currently, Bitcoin is trading around $93,300 – relatively unchanged from the previous day – while altcoins displayed a mixed performance with Ethereum seeing a drop and Solana making slight gains.
In an interview on CNBC’s Squawk Box, Beth Hammack, who heads the Federal Reserve Bank of Cleveland, hinted that the central bank may consider “preemptive” rate cuts as it assesses the impacts of Trump’s inconsistent tariffs on the economy. The S&P 500 rose by 2%, and the Nasdaq soared 2.6% according to data from Yahoo Finance, despite being below their opening prices earlier in April when Trump announced tariffs affecting multiple countries. Bitcoin, in contrast, has experienced upward movement recently, moving away from its previous correlation with tech stocks.
Concerns persist among economists that the tariffs might further boost inflation, though recent figures like the Consumer Price Index have suggested otherwise, indicating softer trends. Trump, in a social media post, claimed that consumer prices are declining nicely and implied the Fed should move quicker on rate cuts, putting pressure on Chair Jerome Powell.
Looking ahead, traders are now predicting a 45% chance the Fed will issue two rate cuts by July’s policy meeting, a slight increase from the previous day’s predictions. Meanwhile, the expectations for holding rates steady dropped significantly. Despite Bitcoin’s minor price drop, a significant surge in spot Bitcoin ETFs noted $1.8 billion in inflows over the past two days, the largest since early January.
Analysts, including Valentin Fournier from BRN, flag the disconnect between rising ETF inflows and Bitcoin’s stagnant price, suggesting that while institutional investment is robust, retail activity is declining, and profit-taking might be at play. In political news, Trump, on his platform Truth Social, took jabs at China, pushing for Boeing to act against the country for not honouring aircraft purchase commitments.
