Bitcoin (BTC) Nears $100,000 as Atlanta Fed President Raphael Bostic's Dovish Remarks Boost Risk-On Assets

After spending more than two weeks trading in the mid-$90,000 range, Bitcoin (BTC) is starting to climb toward the psychologically significant $100,000 mark.

Bitcoin (BTC) price is showing signs of life once again, thanks to dovish remarks from a key Federal Reserve official. The flagship cryptocurrency surged past $99,000 on Wednesday following the comments from Atlanta Federal Reserve Bank (Fed) President Raphael Bostic.

The صحبتs come amid a backdrop of concerns over rising interest rates and a slowing economy. Earlier this month, Federal Reserve Chair Jerome Powell’s hawkish comments dampened investor sentiment, effectively signaling that interest rate cuts may not happen for the rest of the year.

However, Bostic’s latest remarks paint a contrasting picture. The Atlanta Fed president noted that while overall employment remains stable, there are signs of a slowdown beginning to emerge.

“The signs of a slowing labor market are starting to show up in the data. For example, it has become harder for unemployed individuals to find jobs compared to a few months ago, with the probability of securing employment now lower than pre-pandemic levels,” Bostic said.

He added that the average duration of unemployment has extended by approximately three weeks since August 2024. Additionally, he highlighted that the average duration of unemployment has also increased.

“The ‘quits rate’ — the percentage of workers who voluntarily leave their jobs each month — has fallen to levels last seen in 2015, excluding the pandemic years. Given these indicators, I am becoming less convinced that we need to continue raising rates in order to achieve our dual mandate of price stability and maximum employment,” Bostic said.

“In fact, I believe that the balance of risks has shifted and that we should begin considering monetary policy ease. He also pointed to rising geopolitical tensions, especially in light of US President Donald Trump’s proposed trade tariffs,” he added.

According to Bostic, reducing monetary policy restrictiveness would help prevent excessive deterioration in the labor market.

“I project that the Fed will implement two rate cuts in 2025. Following his dovish remarks, the U.S. 10-year Treasury yield and the US Dollar Index (DXY) declined, while risk-on assets like BTC gained.

BTC Coming Of Age In 2025?

Despite the shaky start to the year due to global macroeconomic uncertainties, BTC has performed relatively well. The top cryptocurrency held its own despite the stock market turmoil due to the Fed’s cautious stance on rate cuts.

As Bitcoin continues to trade around the pivotal $100,000 mark with a total market cap of almost $2 trillion, future price pullbacks are likely to be shallower compared to those witnessed during past market cycles.

“Bitcoin is coming of age in 2025. The cryptocurrency has weathered the storm of rising interest rates and a slowing economy, while other assets have taken a beating. This resilience is attracting attention from traditional finance and government bodies,” a recent report by Blockware Solutions noted.

“As a result, more states in the U.S. are exploring ways to incorporate Bitcoin into their treasury reserves. Recently, Kansas, Kentucky, and Utah have taken significant steps toward recognizing BTC as a mainstream digital asset,” the report adds.

This trend aligns with a recent Fidelity Digital Assets report, which suggests that the next wave of crypto adoption will likely be driven by nation-states and government treasuries.

At press time, BTC is trading at $99,112, up 2% in the past 24 hours.