Bitcoin hits new high, market anticipates an earlier Fed rate cut

Bitcoin prices hit another new high, and bullish market sentiment is boosting demand for the cryptocurrency. US Consumer Price Index data has heightened market expectations of a Fed rate cut.

Treasury Secretary Bensoner's aggressive easing rhetoric further reinforced these expectations. Mizuho Securities suggests this may lead the market to believe that the Fed is more likely to cut rates sooner and more significantly.

Analysts note that despite Bensoner's call for a sharp and swift rate cut, Fed doves have merely acknowledged the potential for a rate cut, rather than emphasizing the urgency.