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Bitcoin, XRP Prices Rise. How the Fed Could Boost Cryptos. - BARRON'S
BY George Glover
The central bank is widely expected to keep interest rates unchanged, but Jerome Powell's press conference could give cryptos a boost.
Bitcoin BTCUSD+1.56% was edging higher Wednesday ahead of the Federal Reserve revealing its latest policy decision Wednesday.
While the central bank is widely expected to hold interest rates at their current level, Chair Jerome Powell’s press conference could give cryptocurrencies a much-needed boost.
Bitcoin was up 1.2% to $83,290 in early trading, according to data from CoinDesk. It’s about 31% down from the record high it hit back in January, with tariff uncertainty driving investors away from risk-on assets in recent weeks.
The market is all-but certain that the Fed will keep rates unchanged Wednesday, according to the CME FedWatch tool. But cryptos could benefit if Powell signals that labor-market shakiness and slowing consumer spending have made the central bank more open to loosening monetary policy this year. Investors tend to favor riskier assets when borrowing costs fall, because safer investments like bonds offer relatively lower yields.
Other cryptocurrencies were also rising Wednesday. Ethereum ETHUSD+2.11% climbed 1.5%, XRP
XRPUSD+2.58% gained 1.7%, and Solana added 1.6%.
Write to George Glover at [email protected]
