Bitcoin climbed above $123,000 after Federal Reserve Chair Jerome Powell omitted policy commentary, calming markets and reinforcing expectations of rate cuts. Renewed optimism from dovish FOMC minutes and strong probabilities of Fed easing triggered a broad crypto rebound that lifted Bitcoin and risk assets.
Bitcoin topped $123,000 after Powell’s omission of monetary policy remarks eased investor concerns.
FOMC minutes signaled dovish sentiment and traders now price in multiple rate cuts, supporting crypto risk appetite.
Market data shows a 94.6% probability of a 25-basis-point cut at the October meeting, helping Bitcoin’s monthly gains.
Bitcoin price climbs past $123,000 as Fed silence and dovish FOMC minutes boost sentiment; read COINOTAG’s analysis and key takeaways now.
Bitcoin climbs past $123,000 after Jerome Powell’s remarks omitted monetary policy, easing investor nerves and boosting market sentiment.
- Bitcoin climbed above $123,000 after Jerome Powell’s speech avoided monetary policy discussion, easing investor concern and boosting sentiment.
- FOMC minutes signaled a dovish stance with expectations for rate cuts, supporting Bitcoin’s recent seven percent monthly gain.
- Market optimism grew as investors priced in two potential Fed rate cuts this year, strengthening crypto prices amid delayed U.S. economic data.
Bitcoin regained strength on Thursday, climbing above the $123,000 mark after an early decline that saw it trade just below $122,000. TradingView data confirmed the rebound as investors responded positively to remarks from Federal Reserve Chair Jerome Powell, who refrained from commenting on monetary policy during the Community Bank Conference.
The absence of policy guidance from Powell appeared to calm market expectations, encouraging a rebound across the crypto sector. Market participants had anticipated insights into the Fed’s rate outlook, but his omission led to renewed optimism following Wednesday’s sell-off. Consequently, Bitcoin’s price gained momentum, reversing the prior session’s losses.
What caused Bitcoin to climb past $123,000?
Bitcoin rose above $123,000 primarily because Jerome Powell’s remarks lacked fresh policy direction, which reduced fears of imminent tightening. Combined with dovish cues from recent FOMC minutes and elevated probability of rate cuts, investors increased exposure to risk assets, supporting Bitcoin’s sharp rebound.
How did FOMC minutes and rate-cut probabilities influence the crypto market?
FOMC minutes released earlier in the week signaled a more dovish tilt among policymakers. Traders interpreted the tone as increasing odds of rate reductions before year-end. According to CME FedWatch data, the market currently assigns a 94.6% probability of a 25-basis-point cut at the October meeting, bolstering risk sentiment and crypto flows.
When will upcoming Fed comments matter for Bitcoin?
Several Fed officials scheduled to speak later today—Governor Michael Barr, Minneapolis Fed President Neel Kashkari, and San Francisco Fed President Mary Daly—could provide additional clarity. Any comments that reinforce expectations for gradual easing are likely to sustain the current rally in Bitcoin and other risk assets.
How are delayed U.S. data releases affecting market direction?
U.S. jobless claims were delayed due to the government shutdown, creating a short-term vacuum of macro data. In the absence of fresh labor figures, investors leaned on Fed commentary and FOMC tone for guidance. That dynamic increased sensitivity to central-bank remarks and amplified market moves on any dovish signal.
Market snapshot and comparative data
| Metric | Recent Value | Market Signal |
|---|---|---|
| Bitcoin price | $123,000–$126,000 | Short-term bullish; momentum resumed |
| Monthly gain | ~7% | Positive trend since month start |
| Probability of 25bp cut (CME FedWatch) | 94.6% | High expectation of easing |
Frequently Asked Questions
Why did Powell’s omission lift crypto markets?
Powell’s decision not to discuss monetary policy reduced the risk of unexpected tightening. Markets read the silence as neutral-to-dovish, which lowered near-term rate-hike risk and encouraged investors to re-enter risk assets like Bitcoin.
Will Fed rate cuts guarantee higher Bitcoin prices?
Rate cuts generally support risk assets by lowering borrowing costs and improving liquidity, which can benefit Bitcoin. However, broader macro conditions and market positioning will still determine the magnitude and duration of any rally.
Key Takeaways
- Fed silence helped BTC: Powell’s omission of policy commentary eased immediate market fears.
- Dovish FOMC tone: Minutes signaled possible rate cuts, reinforcing bullish sentiment for crypto.
- Watch Fed speakers: Comments from other Fed officials and delayed U.S. data will drive short-term volatility.
Conclusion
Bitcoin’s jump past $123,000 was driven by a combination of Powell’s neutral remarks, dovish FOMC minutes, and elevated market odds of Fed easing. Market participants should monitor upcoming Fed commentary and macro releases for further direction. For continuing coverage and analysis, see COINOTAG updates and expert market summaries.