Having tumbled to below $112,000 at one point a few days ago, bitcoin (BTC) has returned above $117,000 in late after U.S. trading Thursday, for now retaking the range it had been in for most of July.
First giving a boost the crypto market overnight was news about President Trump’s intention to sign an executive order allowing crypto (among other assets) in 401(k) retirement plans (that order has now been signed).
The push above $117,000 occurred late in the U.S. trading session Thursday on news of the nomination of Stephen Miran to replace the departing Andrea Kluger on the Federal Reserve’s Board of Governors.
Currently the chairman of the White House Council of Economic Advisers, Miran is presumably an ally of the president and for now probably likely to at least partially share his dovish views on the current level of interest rates.
Even prior to the Miran selection, a series of Fed speakers over past days — reacting to Friday’s weak jobs numbers and Monday’s soft ISM Services print — made clear their expectation that a rate cut is likely coming at the central bank’s next meeting in September.
According to CME FedWatch the chance of September cut had risen to 95% from just 38% one week ago.
The Fed’s Jackson Hole Economic Symposium is taking place in two weeks. The confab has in recent years served as a spot for Fed chairs to signal important policy actions, so all eyes and ears are likely to be focused on Jerome Powell’s keynote speech there.
Alongside the move higher in bitcoin to $117,500 — up 2% the past 24 hours — ether (ETH) is ahead 5% to $3,867 XRP (XRP) 3.4% to $3.10.
Checking traditional markets find gold up 1% to $3,468 per ounce, the dollar modestly lower across the board and major stock market indices mixed.