The president of the federal reserve, Jerome Powell, faces one of his most difficult weeks of his career. President Trump demands pricing and even spoke of replacing him. At the same time, the Fed faces heat on a $ 2.5 billion renovation project, although it does not use taxpayer money.
Meanwhile, the financial analyst Paul Barron says that all this could prove to be a new optimist for the crypto, in particular Bitcoin.
CPI data expectations
The tension should peak, because the inflation data of the consumer price index (ICC) will be published today for June. However, last month, the May IPC arrived at 2.4%, slightly higher than the April figure.
Experts now predict that the June IPC could reach 2.6%. However, if inflation surprises downwards, falling below 2.4%, this could give the federal reserve green light to reduce interest rates earlier.
Low interest rates would likely pump more liquidity on the markets, which gives a strong boost to risky assets such as cryptocurrencies.
Recently, Bitcoin has just crossed the $ 120,000 mark, reaching up to $ 123,000. The optimistic forecasts of analysts suggest that Bitcoin could reach $ 130,000 before the end of July.
The $ 2.5 billion renovation scandal in Powell intensifies
In addition to IT, the president of the federal reserve Jerome Powell faces the growing controversy, because the cost of renovating the historic headquarters of the Washington DC Fed has climbed to $ 2.5 billion, or nearly $ 700 million above previous expectations.
Crypto week: major decisions to come
It is not only the version of the CPI data or the Fed drama giving to Crypto. This week, the House of Representatives of the United States calls it the “cryptography week” while legislators vote on the main cryptographic bills.
One of them is the Clarity Act, which aims to define clear rules for digital assets and cryptocurrency markets and to decide which agencies will regulate it.
Another is the anti-CBDC law on the surveillance state, which wishes to block the launch of a digital government dollar due to confidentiality problems.
The act of genius is also on the table. It establishes the first clear rules for stablecoins, helping both security and innovation.
Why this counts for the crypto
According to analyst Paul Barron, the issues are enormous. If the IPC figures of tomorrow are less than 2.4%, the Fed could soon reduce interest rates. This could bring fresh money on the market and push risk assets like the higher crypto.
Barron also says that Bitcoin could move differently from stocks if more liquidity arrives. This change could also stimulate parts like Ethereum and XRP, giving them room for strong gains.
