Warsh’s tone regarding inflation seems to suggest that he will take any actions necessary to keep inflation in check.
Net Outflows From Bitcoin ETFs Slow Down
At a point when the annualized inflation rate has more than doubled the Fed’s 2% target, the market is expecting a rate hike in the following months of as much as 50 basis points.
In its latest market update, analyst James Butterfill from CoinShares confirmed that Bitcoin remains highly sensitive to changes in the dot plot — a map provided by Fed officials regarding how rates may evolve over time.
“The Fed kept the policy rate unchanged at 3.5% to 3.75%, but this was not a dovish hold. The statement stressed that activity remains solid, uncertainty is elevated because of the Middle East conflict, and inflation is still above target partly because of energy-related supply shocks.”
However, Butterfill emphasized that the “structural” case for BTC could in fact be more bullish than ever as the new head of the Fed seems unwilling to provide guidance for the markets, which increases the top crypto’s appeal as an independent and fully decentralized store of value.