Bitcoin and XRP rebound and held upside momentum on Friday. Fed Chair Kevin Warsh declined to offer clues on the next FOMC meeting. However, stocks and crypto had plunged after hot inflation data.
Why Bitcoin and XRP rebound today
Kevin Warsh spoke at the IMF-World Bank Annual Meetings. He joined IMF Managing Director Kristalina Georgieva. He reiterated the Fed’s commitment to price stability. The Fed raised rates in September to 3.75–4%. Sticky inflation, elevated oil prices, and strong investment demand drove that move.
Warsh refused to preview the October 27–28 FOMC meeting. “I don’t prejudge meetings,” he said. He also said he doesn’t “believe in saying now what I might do.” This continues his preference for data-dependent policy. Therefore, he avoids forward guidance.
He noted that most central banks have tightened policy. He described it as a shared fight with no free riders. He also discussed economic resilience amid geopolitical conflicts. Notably, US retail sales beat expectations for two straight months.
Warsh defended September’s rate hike as necessary. He called AI “probably the most consequential change” in his lifetime. He warned the near-term path will be “very bumpy.” Currently, AI-related investment is boosting demand. The US also benefits from a broader investment surge.
He highlighted structural growth tailwinds. These give the US economy strength. However, investors remain cautious amid market volatility. Hot CPI and PPI data reinforced rate hike concerns.
Bitcoin and XRP prices rebound after Warsh remarks
Asia stocks and US stock futures edged higher on Friday. Crypto prices also rose. Investors now anticipate a Fed pause in October. Consequently, CME FedWatch shows hike odds falling. Specifically, they dropped from 33% to 15% in hours. However, December hike concerns remain.
Meanwhile, 10-year Treasury yields were stable near 5.08%. The US dollar index dropped to 101.83. Oil prices dipped to almost $97 per barrel. The IEA plans to fast-track its emergency oil release. Russian diesel supply also helped. Meanwhile, Iran struck tankers in the Strait of Hormuz.
Bitcoin jumped more than 2% over 24 hours. It trades near $82,068 at press time. Price rebounded from $79,805 to a high of $82,508. Buy-the-dip sentiment drove the move. It now holds above the key 50-day moving average.
XRP price jumped strongly and holds near $1.33. It had dropped to $1.28 over the past 24 hours. As previously reported, an analyst predicted a fall toward $1.25. Buying pressure could then reclaim $1.42 and $1.60.
Key levels to watch
Bitcoin must hold above $82,000 to sustain the rebound. A break below could retest $80,000. XRP needs to hold $1.35. A recovery above $1.42 would strengthen the bullish case. Meanwhile, traders should watch Fed signals and inflation data.
