Bitcoin lost modest ground on Friday, relinquishing some earlier gains as the risk appetite softened amid uncertainty about the Federal Reserve’s monetary policies.
The world’s most valuable cryptocurrency marked modest gains this week alongside other cryptocurrencies following the Israel-Iran ceasefire.
Bitcoin dipped 0.3% to $107,542 this morning, on track for a weekly profit of 5%.
Despite the calm following the Israel-Iran ceasefire, uncertainty about the Federal Reserve’s independence and its future interest rate plans hurt the risk appetite.
Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.
Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.
Powell warned that while Trump’s tariffs could cause a one-time hike in prices, the risk of sustained inflation is big enough to force the Fed into more caution about rate cuts.
The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.
Bitcoin Grabs Headlines Once More
Bitcoin continues to grab glocal headlines, with some Indian politicians calling for buying bitcoin as a strategic reserve.
This is part of an increasing global trend among governments and institutions to expand bitcoin adoption as a reserve and maybe even a safe hafe of sorts.
It’s charting a similar story to gold in its earlier reserve days worldwide, with bitcoin likely going on a similar acceptance path as a value store.
Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.
Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.
Powell warned that while Trump’s tariffs could cause a one-time hike in prices, the risk of sustained inflation is big enough to force the Fed into more caution about rate cuts.
The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.
Strong Institutional Demand
Bitcoin is buoyed by rapidly increasing institutional demand, with SoSoValue data showing net investments into bitcoin sport ETFs at $547 million, with total weekly inflows amounting to $1.49 billion so far.
Otherwise, major corporations continue to add to their bitcoin holdings, with Japan’s MetaPlanet adding 1234 units on Thursday, raising its total holdings to 12,345 units.
PtoCap BTC also bought 1208 bitcoins, raising total holdings to 4932 units.
