10x Research: Powell's speech on Friday may boost stocks and risk assets like Bitcoin

ChainCatcher news, 10x Research stated in its latest analysis that Bitcoin has risen by 4% since yesterday, consistent with its bullish outlook. Bitcoin made a decisive upward move, breaking through the symmetrical triangle pattern, indicating potential for further upside.

With the support of an increase of $1 billion in open interest, Bitcoin's funding rate has returned to a premium. Considering these dynamics, a straightforward strategy is to go long on Bitcoin while shorting Ethereum, as Bitcoin's dominance continues to rise, with its share of open positions increasingly deviating in favor of Bitcoin. The Federal Reserve's meeting minutes were as expected, with a strong focus on the employment aspect of its dual mandate.

According to current economic data forecasts, the inflation target seems within reach. "The vast majority" of FOMC members support a rate cut in September, with several members even considering a rate cut in July as a viable option. This makes a rate cut in September almost inevitable. Powell's upcoming speech on Friday is expected to reinforce this dovish outlook, potentially boosting risk assets like stocks and Bitcoin, as monetary policy provides a favorable backdrop. The Federal Reserve's focus in decision-making is shifting towards employment, making inflation data less significant, especially with CPI trending towards 2.5% in the coming months. Multiple rate cuts may be needed to sustain the current economic expansion.