You might have noticed yesterday; while Bitcoin was climbing, US stocks were plummeting! Both the S&P 500 and the Nasdaq 100 closed yesterday with a 1 percent decline. What caused this? Statements from an American central banker played a role.
Neel Kashkari
Neel Kashkari stated, "If inflation continues to move sideways, then I wonder why we need any rate cuts at all.", during a virtual LinkedIn event. Such remarks from the American central banker aren't surprising, as he is known to be part of a group of bankers who often make stern public statements. However, this time, the US stock market reacted immediately, indicating fears of no forthcoming rate cuts.
Jerome Powell
However, Jerome Powell stated this week at Stanford University in the US that he still expects several rate cuts this year. Who will be proven right will be known on Friday; that's when important data about the US labor market will be released, expecting unemployment to remain at 3.9 percent. If it turns out higher, this could be positive for Bitcoin's price.
Bitcoin
Why the price rose by about $4000 during the same period remains unclear. Generally, Bitcoin's price moves fairly in sync with the rest of the financial market. The increase could be related to the Spot Bitcoin ETFs. For now, there's a reported inflow of $101 million, equivalent to a gain of 1,467 Bitcoin. Numbers from Fidelity need to be added to this, but their reporting is pending.
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