Powell Floats Dovish Pivot—BTC Roars Back to $106K as Traders Bet Against the Fed

Jerome Powell just handed crypto bulls a loaded gun. The Fed chair’s latest testimony hinted at rate cuts sooner rather than later—and Bitcoin’s already pricing in the liquidity tsunami.

Market mechanics 101: When Powell whispers ’accommodative,’ degenerates yell ’risk-on.’ The king crypto ripped past six figures overnight as traders front-ran the money printer’s return. Never mind that pesky 40% inflation hangover from 2024.

Wall Street’s scrambling to reposition, but let’s be real—they’ll be late as usual. Meanwhile, the OGs are stacking sats and laughing at the ’institutional adoption’ narrative they’ve been force-fed since 2020. Gold? Boomer bait. Equities? A rigged casino. BTC’s the only hedge left when central bankers lose the plot.

Funny how ’macroeconomic uncertainty’ always seems to resolve in Bitcoin’s favor. Almost like the system’s built to fail.

The world’s largest cryptocurrency, Bitcoin, has jumped back to $106k today after dipping to some of its weekend losses around $103k. The surge comes right after as the Federal Reserve hints at a possible change in its strict money policy later this year.

Therefore, traders are bullish on the Bitcoin surge. 

Powell Hints at Softer Money Policy

Speaking at an event for the Fed’s International Finance (IF) Division, Powell said their work helps understand the world’s economy and all the risks. He didn’t mention interest rates directly, but he did say that global data matters a lot now..

Powell’s comments didn’t go unnoticed. Investors saw them as a quiet sign that the Fed is starting to think about changing its current tight money approach if economic trends keep heading in the right direction.

Why This Could Be Good News for Bitcoin

This talk of a softer policy shift is good news for bitcoin and other riskier assets. Eventually, the inflation is slowing down, and jobs are steady. Currently, inflation is at 2.3%, close to the Fed’s 2% goal. 

Meanwhile, the Unemployment rate is also around 4.2%, showing that people are still working and the economy is okay.

Even though Powell didn’t say there will be cuts soon, he said that global data is very important. Traders think this could mean the Fed might lower rates later if inflation keeps falling and jobs stay strong. 

Lower rates make it easier to borrow money, which usually helps things like Bitcoin go up.

Cautious Approach, But Market’s Ready

For now, the Fed is being careful. Most traders think rates will stay steady at the June meeting. The CME FedWatch Tool shows a 95.3% chance of no change in rates next month. Only a small chance of a cut is expected.

This careful but open approach has traders hopeful that Bitcoin and other cryptos will see more gains soon.

As of now, Bitcoin is trading around $105,253, reflecting a slight drop seen in the last 24 hours.