Bitcoin Surges to $84K as Fed Signals Possible Market Intervention
The crypto market witnessed a strong rebound after Boston Federal Reserve President Susan Collins indicated that the central bank is prepared to deploy various tools to stabilize markets if liquidity concerns intensify.
Speaking to the Financial Times Collins stated The core interest rate is not the only tool we have and likely not the most effective when dealing with liquidity or market functioning challenges.
Following her remarks, Bitcoin (BTC) jumped by 5% on Friday crossing the $84,000 mark recovering from Thursday’s 4% dip driven by global trade tensions. Ethereum (ETH) XRP and Solana (SOL) also posted gains.
The rebound was further supported by a weaker than expected Producer Price Index (PPI) hinting at easing inflation pressures. Investors now anticipate that the Fed could reintroduce bond Buying strategies if Treasury yields continue to rise sharply similar to its 2020 market intervention which preceded Bitcoin’s historic rally from $5,000 to over $60,000.
As fears around a global trade war linger crypto traders are watching the Fed's next move closely hoping for another liquidity boosting lifeline.
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