Bitcoin’s price dropped 2.79% to $86,979 on Nov. 14 following comments from U.S. Federal Reserve Chair Jerome Powell, who signaled no urgency to lower interest rates further. Speaking in Dallas, Powell stated, “The economy is not sending any signals that we need to be in a hurry to lower rates,” citing recent strength in economic performance.
The remarks come after rate cuts of 50 and 25 basis points in September and November, respectively, with the next decision set for Dec. 18. Traders’ confidence in a December rate cut has diminished, with the odds falling to 59%, according to The Kobessi Letter, which noted that the anticipated “Fed pivot” is being reversed.
Bitcoin, closely tied to interest rate expectations, initially fell to $86,979 before recovering slightly to $88,100. Lower interest rates make traditional investments like bonds less appealing, often driving interest in riskier assets such as Bitcoin and tech stocks. Powell reiterated that the Fed’s decisions would depend on evolving economic data and outlooks.
Source | Photo Credits: Cointelegraph
