Powell prepares for a rate cut in September, Bitcoin stabilizes around 57K, Ethereum holds above 3,000.

Federal Reserve Chairman Powell appeared at a congressional hearing, and the major U.S. stock indices closed higher on 7/9, continuing to hover near historic highs. The Bitcoin spot ETF saw a net inflow of $294.9 million on the trading day of 7/8, perhaps supported by the "strong hands" of the baby boomer generation, or perhaps the market is slowly digesting news of institutional selling. Bitcoin stabilized slightly yesterday, holding above $57,000. Ethereum also remained above $3,000 on the eve of the Ethereum spot ETF potentially being approved.

Powell: Maintaining High Interest Rates Long-Term Could Jeopardize Economic Growth

According to a report by CNBC, Federal Reserve Chair Jerome Powell spoke at a two-day congressional hearing at Capitol Hill, stating that despite recent signs of cooling, the economy and labor market remain strong. Powell mentioned a moderation in inflation and expressed policymakers' firm commitment to bringing the inflation rate down to the 2% target.

Cutting policy rates too late or too little, which means lowering interest rates, may excessively weaken economic activity and employment.

Powell's remarks have fueled investor expectations of rate cuts, seen as a prelude to a cut in September. According to CME Group's FedWatch data, investors' expectations of a September rate cut have risen to 73%.

The release of the June Consumer Price Index (CPI) on Thursday may provide more clues on the path for future rate cuts. The Fed has repeatedly stated the need for more confidence in inflation slowing down before starting rate cuts.

Baby Boomers' "Strong Hands" Drive Net Inflows into Bitcoin Spot ETF

Bitcoin spot ETF saw a net inflow of $294.9 million on the trading day of 7/8, marking a new high since the $488 million on 6/5.

Bloomberg ETF analyst Eric Balchunas stated that despite a 20% drop in Bitcoin within a month, Baby Boomers remain steadfast, maintaining net inflows of $15 billion year-to-date. He refuted misconceptions about ETF investors such as "dumb money" and "weak hands," emphasizing their display of "smart money" and "strong hands."

We see it in the data over and over again, especially in stocks. Clearly, they span all age groups, and Baby Boomers are just an interesting label to mark them in relation to Bitcoin.

German Government Selling Coins Again

However, the German government, which has recently been transferring Bitcoin to exchanges, seems to be selling coins again! According to Arkham data, a wallet marked as the German government transferred Bitcoin yesterday, sending 400, 200, and 2,500 BTC to exchanges Kraken, a certain address, and possibly the market maker B2C2's address.

Their Bitcoin holdings have decreased from 50,000 on 6/29 to 23,964.

BTC Stabilizes around 57K, ETH Maintains Above 3,000

Perhaps supported by the Baby Boomers' "strong hands," or maybe the market is slowly digesting news of institutional selling, Bitcoin stabilized slightly above 57K yesterday. Ethereum also held above $3,000 as the Ethereum spot ETF is on the verge of approval.