Bitcoin has surged past $67,000 following the release of the Federal Reserve’s Beige Book survey, which indicated a subdued economic outlook and increased the possibility of rate cuts in November and December. The report revealed that nine out of 12 regional banks reported stagnant or slightly weak economic activity since early September. This news has bolstered hopes for further rate reductions by the Fed in the coming months.
The rally in the dollar index (DXY) has stalled after the Beige Book report, allowing for Bitcoin to make a recovery. Bitcoin is currently trading 1% higher at $67,300, bouncing back from overnight lows under $53,500. The DXY index has pulled back from its high of 104.57 to 104.30, following the release of the report.
The Beige Book outlook contradicts the strong September jobs report, leading to expectations of further rate cuts by the Fed. Chairman Jerome Powell and other Fed officials have cited the dour economic conditions as a reason for the 50 basis point rate cut in September. Markets are now anticipating additional rate cuts of 75 basis points by the end of the year.
Despite the positive September jobs data and inflation report, the Beige Book survey has reinforced the case for further easing of monetary policy. This news has had a significant impact on the dollar index and the cryptocurrency market, with Bitcoin experiencing a price surge in response to the Fed’s economic assessment.
Overall, the Beige Book survey has provided valuable insights into the current economic conditions in the U.S. and has influenced market expectations regarding future rate cuts by the Federal Reserve. Investors are closely monitoring the situation as they anticipate further developments in monetary policy based on the Fed’s assessment of the economic landscape.