A timid Powell pushed bitcoin towards 100,000 dollars
Bitcoin recovered price levels not seen in over 2 months.
The market was expecting something, anything. A hint, a nod, a loose phrase that would allow projecting what the U.S. Federal Reserve (Fed) will do with interest rates for the rest of the year.
But Jerome Powell, chairman of the Fed, spoke and said nothing. Or rather, he said a lot without saying anything. His speech was timid, lacking conviction, predictable, and more akin to a chatbot than the president of the most influential central bank in the world.
There was no rate cut, as expected. There were also no signs that they are coming closer. But also none that they are not coming closer. "Wait and see" remains the Fed's monetary policy. Powell reiterated that decisions will be made meeting by meeting, and that everything depends on the evolution of inflation and employment. Clichéd, neutral, worn-out phrases. At this point, listening to Powell is like listening to the same audiobook on repeat.
And yet, bitcoin rises. While Powell spoke —or mumbled his ambiguity with technical manners— the price of bitcoin (BTC) began to climb. And this Thursday it is trading again above 99,000 dollars, at its highest level since early March. At times, the digital currency flirts with the 100,000 dollar mark, a level it hasn't touched in over two months.
So, why is bitcoin rising if there were no relevant announcements from the Fed? Precisely because of that.
What matters is what was not said
The key to understanding market behavior often lies in the silences. Powell did not announce cuts, but he also did not close the door.
