Powell's 'Cautious Stance' May Signal Slowdown in Bitcoin Bull Market

JOON HYOUNG LEE

Summary

Analysis indicates that the US Fed's cautious stance on rate cuts may slow down the Bitcoin bull market momentum.
Nick Luck, Director at LVRG Research, stated that while the Fed's cautious approach could slow Bitcoin's upward pace, fundamental liquidity growth could support a rebound.
Fed Chair Jerome Powell mentioned that a restrictive monetary policy is not burdening the economy, implying that a tightening bias may persist for the time being.

The US Fed's continued cautious stance on rate cuts has prompted analysis suggesting that the bullish momentum for Bitcoin (BTC) could slow down.

Nick Luck, Director of LVRG Research, told Cointelegraph on the 30th (local time), "If the Fed maintains its cautious stance, the pace of the Bitcoin bull market could decelerate," adding, "However, fundamental liquidity growth will eventually provide a floor to support a rebound."

Earlier, Jerome Powell, Chair of the Fed, made hawkish (pro-tightening) comments regarding the possibility of a rate cut in September, during a press conference held that day. Powell stated, "Neither I nor most of the (Fed) committee members believe that currently restrictive monetary policy is inappropriately restraining the (US) economy," and "the majority of the Federal Open Market Committee (FOMC) currently considers it still appropriate to maintain a 'modestly' restrictive policy."

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