Could Powell’s Testimony Propel Bitcoin to $100K? Experts Weigh In
Key Points:
- Bitcoin trades around $97K ahead of the Fed Chairman’s testimony.
- A $100K surge depends on BTC holding the $97K support level.
- Failure to hold could lead to a drop towards $93.3K, $90.9K, or even $89K.
Bitcoin’s Outlook Before Powell’s Testimony
As Federal Reserve Chairman Jerome Powell prepares for his testimony before Congress on February 11 and 12, Bitcoin’s price hovers around $97K after a six-day consolidation. Investors are watching closely to see if Powell’s comments could introduce volatility and trigger BTC’s climb to $100K.
Powell’s Testimony: A Catalyst for Bitcoin?
Powell is scheduled to address the Senate Banking Committee on Tuesday and the House Financial Services Panel on Wednesday as part of his semiannual report on the economy. Analysts believe his statements are unlikely to push BTC past $100K unless there is a significant shift in monetary policy expectations.
Market experts predict Powell will emphasize:
- Economic resilience and the Fed’s dual mandate.
- No immediate rate cuts until the second half of the year.
- A data-driven stance on inflation before making policy adjustments.
However, the January jobs report showed 143K new jobs, falling short of the 170K estimate. If Powell acknowledges labor market weakness and hints at potential rate cuts before June 2025, this could fuel a rally in risk assets like Bitcoin.
Bloomberg economists noted:
“Powell has stated the Fed needs to see ‘real progress’ on inflation or labor-market weakness before considering rate adjustments.”
The upcoming CPI data could also influence market sentiment. If inflation numbers come in higher than expected, it may pressure the Fed to hold rates steady, limiting Bitcoin’s upside potential.
Market Liquidation Data: BTC’s Critical Levels
- If BTC surpasses $97,722, $77 million in short positions will be liquidated, possibly fueling further gains.
- However, a drop below $96,174 would liquidate $137 million in long positions, triggering potential sell-offs.
- In the past 24 hours, $247 million in crypto positions have been liquidated, emphasizing market overleveraging.
Bitcoin’s Next Moves
At 8 AM on February 10, Bitcoin traded at $97,731, reaching an intraday high of $97,890. The $97K level remains a key support and has been the highest trading volume area since November 2024.
If BTC rebounds from this level, it could challenge the $101.5K resistance. However, a breakdown could lead to a decline to $93.3K or lower.
While BTC reaching $100K before Powell’s speech remains uncertain, the testimony, along with upcoming CPI data, could play a significant role in determining Bitcoin’s next major move.
