The Federal Reserve Has Quietly Primed Bitcoin For A Perfect Price Storm

The bitcoin price has bounced back toward $70,000 per bitcoin after crashing toward $60,000 even as crypto price data showed bitcoin could be going into its biggest ever month.

Now, as the bitcoin and crypto market braces for a "big deal" China earthquake, Fed chair Jerome Powell has signaled an interest rate cut is coming this year—just as bitcoin is set to see its supply cut in its scheduled so-called halving.

"Federal Reserve chair Jerome Powell warned yesterday of a risk of having to delay cuts thanks to stubborn inflationary pressures, although there was enough to reassure investors that a rate cut is coming at some point this year," Russ Mould, investment director at brokerage AJ Bell, said in emailed comments.

Earlier this week, Louis Navellier, founder of Navellier & Associates, wrote in a note seen by MarketWatch the bitcoin and crypto market "seems to be holding its breath, waiting for interest rates to give back some of its increases."