Bitcoin Retakes $67K, Dollar Index Rally Stalls as Beige Book Supports Fed Rate Cuts

Beige Book bolsters hope for quarter-point Fed rate cuts in November and December.

Bitcoin (BTC) price rose above $67,000 on Wednesday as the Federal Reserve's latest Beige Book survey showed a weaker U.S. economic outlook, bolstering the case for further interest rate cuts.

The Beige Book, a snapshot of economic activity across the country, showed that nine out of 12 regional banks reported stagnant or slightly weak activity since early September. Most districts saw a decline in manufacturing activity, with some signs of moderation in consumer demand.

"Those [Beige book] comments got the markets' attention and helped to solidify the belief that another 25 bps cut is coming in November and a high chance of one in December. The turn in the dollar was across the board afterward," ForexLive noted in the blog post.

Several Fed officials, including Chairman Jerome Powell, cited the dour Beige Book outlook as one of their reasons for cutting the benchmark borrowing cost by 50 basis points to the 4.75%-5% range in September.

Markets were quick to price an additional 75 basis points of easing by the year's end. However, those hopes were dented by the upbeat September jobs data and the hotter-than-expected September inflation report.

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