10x Research: Powell's Friday Speech May Boost Stocks and Risk Assets such as Bitcoin
In its latest analysis, 10x Research stated that Bitcoin has risen by 4% since yesterday, consistent with its bullish outlook. Bitcoin made a decisive upward move, breaking through the symmetrical triangle pattern, indicating potential for further upside. With the support of an additional $1 billion in open contracts, Bitcoin's funding rate has returned to a premium. Considering these dynamics, one direct strategy is to go long on Bitcoin and short Ethereum as Bitcoin's dominance continues to rise and its share of open positions continually shifts in favor of Bitcoin. The minutes from the Federal Reserve meeting were as expected - mild and strongly focused on employment within their dual mandate. Based on current economic data forecasts, inflation targets seem within reach.
The "vast majority" of FOMC members supported a rate cut in September; several even thought that cutting rates in July was a viable option making it almost certain for September. Powell's upcoming speech this Friday is expected to reinforce this dovish outlook which could boost risk assets such as stocks and bitcoin because monetary policy provides favorable conditions. The Fed’s focus during decision-making is shifting towards employment while inflation data becomes less important especially when CPI trends towards 2.5% over the next few months.To maintain current economic expansion multiple rate cuts may be needed.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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