10x Research: Powell's speech on Friday may boost risk assets such as stocks and Bitcoin

In its latest analysis, 10x Research said Bitcoin is up 4% since yesterday, in line with its bullish outlook. Bitcoin made a decisive move to the upside, breaking out of a symmetrical triangle pattern, which suggests that further upside potential could be in store. Bitcoin’s funding rate is back in premium, supported by a $1 billion increase in open interest. Given these dynamics, a straightforward strategy would be to go long Bitcoin while shorting Ethereum as Bitcoin’s dominance continues to rise and its share of open interest keeps diverging in Bitcoin’s favor. The Fed minutes were as dovish as expected, with a strong focus on the employment side of its dual mandate. Inflation targets appear within reach based on current economic data projections. The “vast majority” of FOMC members supported a September rate cut, with several even considering a July rate cut as a viable option. This makes a September rate cut all but certain. Powell’s upcoming speech on Friday is expected to reinforce this dovish outlook, potentially boosting risk assets like stocks and Bitcoin as monetary policy provides a favorable backdrop. The Fed's focus is shifting to employment when making decisions, and inflation data is becoming less important, especially as CPI trends toward 2.5% in the coming months. Multiple rate cuts may be needed to maintain the current economic expansion.