Bitcoin Adds 4.5% as Stocks Reverse Lower on Hawkish Fed Commentary

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Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.

It was a day of positive divergence for crypto bulls as stocks tumbled late in the U.S. trading session while bitcoinIn late afternoon action, the S&P 500 and Nasdaq were each lower by nearly 1% – not a huge loss, but about a 2% reversal off of earlier session highs. Behind the moves lower were hawkish comments from Minneapolis Fed President Neel Kashkari.

"If we continue to see inflation moving sideways, then that would make me question whether we to do those rate cuts at all," said Kashkari at a virtual event on LinkedIn. Kashkari has been among the more hawkish Fed members this cycle so his remarks shouldn't have been too unexpected, but stocks quickly reacted to the downside.

Economist estimates are for 200,000 jobs to have been added in March, a strong number, though down from 275,000 in February. The unemployment rate is expected to hold steady at 3.9%. Bitcoin, which had slipped as low as $65,000 overnight, rallied throughout much of the U.S. day, at one point topping $69,000. At press time, the crypto was trading at $68,750, up 4.5% over the past 24 hours. The broaderin a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.

 

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