Bitcoin price rebounds on Biden’s optimism that the Fed will cut rates ‘this year’

Bitcoin It made a small recovery after US President Joe Biden expressed hope for a slowdown this year.

Following yesterday's hot-than-expected CPI report numbers that showed inflation held at 3.5% in March, Biden said he expects inflation to slow before the end of the year.

At a press conference in Japan, Biden said, “I stand by my prediction that there will be a rate cut before the end of the year. That could be delayed by a month or so, I'm not sure about that.”

“We don't know for sure what the Fed is going to do, but look, we've brought inflation down from 9% to close to 3%,” he added.

With every information from CoinGecko, the The price of Bitcoin It is currently around $70,800, up 2.5% on the day, after dipping yesterday after the CPI report.

The broader crypto market rose closely with Bitcoin, with the market cap of all cryptocurrencies rising 2.3% to $2.77 trillion, and the top 10 cryptocurrencies (barring stablecoins) all in the green over the past 24 hours. EthereumThe second largest cryptocurrency, grew 1.9% just below $3,600.

Despite high inflation, the US Federal Reserve has refrained from cutting federal interest rates – which tends to steer investors toward traditional safe havens like Treasury bonds rather than volatile assets like crypto and stocks.

Yesterday also saw a recent reversal of Bitcoin ETF outflows, with $123.7 million flowing into exchange-traded products. Greyscale's GBTC saw its lowest day of outflows, with just $17.5 million coming out of the fund, after the firm's CEO Michael Sonnenschein said outflows from GBTC were approaching “balance.”

Edited by Stacy Elliott.