Bitcoin s Recovery: A Lifeline from the New York Fed
Bitcoin experienced a sharp decline, dropping to 80K early Friday morning. However, a speech by John Williams, the President of the New York Fed, may have prevented further losses. Williams addressed the Centennial Conference in Santiago, Chile, where he hinted at a potential interest rate cut in December.
I still see room for a further adjustment in the near term to the target range for the federal funds rate,
Williams stated. This remark was pivotal in lifting a struggling stock market and possibly stabilizing Bitcoin above the 80K mark.
The New York Fed s unique position grants it a permanent seat on the Federal Open Market Committee FOMC , unlike other regional branches that participate on a rotational basis. This allows Williams to have significant influence over monetary policy decisions.
At the time of reporting, Bitcoin was priced at 84,791.82, reflecting a 2.27 decrease over the past day. The cryptocurrency had fallen to 80,659.81 after reaching a high of 88,126.81 within a 24-hour period. Despite this volatility, Williams speech likely prevented a deeper plunge.
Sharp turns and unpredictable terrain have been an unavoidable part of our journey,
Williams acknowledged. This statement underscores the ongoing uncertainty in the market.
In summary, John Williams comments about a possible interest rate cut provided a much-needed boost to Bitcoin during a turbulent period. While the cryptocurrency is still facing challenges, his remarks may have helped avert a more significant decline.