Bitcoin Hovers Below $50K as Traders Await Fed’s Take on Bond Yields

Bitcoin’s recovery appears to have stalled as caution sets in ahead of expected comments from Federal Reserve Chairman Jerome Powell later on Thursday.

The cryptocurrency is currently nursing losses below $50,000, having bounced from $43,000 to $52,500 in the past four trading days, according to CoinDesk 20 data.

A Q&A between Powell and the Wall Street Journal today will be closely watched by investors as it may influence risk sentiment in the financial markets and set the tone for the next big move in bitcoin (BTC, -2.3%). Specifically, what Powell says about bond yields will be of interest, trader and analyst Alex Kruger told CoinDesk.

According to ING analysts, “comments that is monitoring events in the Treasury market might be enough to calm things down, encourage a return to a softer dollar.”

That could bode well for bitcoin and stocks. Both assets have mostly moved in the opposite direction to the dollar index over the past 12 months, as seen below.

However, the rally in yields may accelerate, leading to a stronger dollar and weaker bitcoin, if Powell downplays concerns over rising bond yields, taking cues from his European Central Bank counterparts.