- Bitcoin has held steady above $67,000 as U.S. stocks rallied ahead of Fed Chair Jerome Powell’s testimony to Congress.
- Major indexes climbed Thursday after losses earlier this week, with analysts citing Fed officials’ comments signaling potential rate cuts later this year.
- Markets are focused on Powell’s testimony about the outlook for monetary policy, which is key for bitcoin and crypto markets that have rallied amid pivots toward less hawkish Fed policy.
Bitcoin has held its ground above $67,000 alongside a Wall Street rally on Thursday morning ahead of Federal Reserve Chair Jerome Powell’s testimony before Congress.
Bitcoin Price Action
The largest cryptocurrency by market capitalization was trading around $67,199 at 11:30 a.m. ET, up about 1% over the last 24 hours according to data from The Block.
Bitcoin has consolidated above $67,000 after surging to new all-time highs above $69,000 last week. The cryptocurrency has closely tracked U.S. stock market moves in recent weeks.
Stocks Climb Ahead of Powell Testimony
Major U.S. stock indexes were solidly higher Thursday morning, rebounding after losses earlier this week.
The S&P 500 climbed 0.88% over the last 24 hours, while the Dow Jones Industrial Average rose 0.41%. The tech-heavy Nasdaq Composite gained 1.38% over the same period based on TradingView data.
Analysts said stocks have been supported by comments from Fed officials, including Powell, signalling interest rate cuts could come later this year. The U.S. dollar has weakened on expectations for easing Fed policy, helping drive gains for bitcoin and gold.
Focus on Powell Testimony
On Thursday, Powell is testifying before Congress for a second day about the outlook for monetary policy.
Analysts say Fed rate cuts this year hinge on several more months of cooling inflation data. Markets are currently pricing in a high probability of rate cuts starting in June.
The central bank’s policy path is critical for broader financial markets. Bitcoin and cryptocurrencies have rallied this year amid a pivot toward less hawkish Fed policy as inflation shows signs of moderating.
