Bitcoin Falls in Wake of Fed Decision, U.S. Data Next Key Focus

Dow Jones10-29 17:27

0927 GMT - Bitcoin's decline highlights continued uncertainty over U.S. monetary policy, institutional investment demand and geopolitical tensions, Zaye Capital Markets analyst Naeem Aslam says in a note. The Federal Reserve held interest rates steady Wednesday but two policymakers favored raising rates which reinforced concerns monetary conditions could remain restrictive, he says. U.S. data Thursday including third-quarter GDP, PCE inflation and weekly jobless claims will provide important signals. "Stronger-than-expected GDP accompanied by elevated inflation could reinforce expectations for restrictive monetary policy, strengthening Treasury yields and potentially pushing bitcoin toward the $79,000-$80,000 support region." Softer inflation alongside resilient growth could improve risk appetite, reduce rate expectations and lift bitcoin towards $81,500-$82,000, he says. Bitcoin falls 1.6% to $79,939, LSEG data show.

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