Bitcoin BTC has regained its position above $67,000, following insights from the Federal Reserve's recent Beige Book that suggested a less optimistic economic outlook. This development raises expectations of potential rate cuts in the coming months.

The latest Beige Book revealed that nine out of twelve regional banks reported stagnant or slightly declining economic activity since early September. Notably, there was a decline in manufacturing activity along with some signs of cooling in consumer demand.

The report highlighted a moderation in inflation, with selling prices experiencing only slight increases across most regions. Hiring trends appeared cautious, focused more on replacing staff than expanding.

Currently, Bitcoin is trading at approximately $67,300, reflecting a 1% surge from the previous day, while the dollar index (DXY) has also seen its rally stall, pulling back to 104.30 after peaking at 104.57 earlier in the day.

Market analysts noted:

"Comments from the Beige Book captured market attention, reinforcing beliefs that the Fed might reduce rates by another 25 basis points in the upcoming meetings in November and December." - ForexLive

Several Federal Reserve officials, including Chairman Jerome Powell, have cited the adverse Beige Book assessment as part of their reasoning for the previous interest rate cut of 50 basis points to the 4.75%-5% range enacted in September.

Despite a swift market reaction anticipating additional easing measures, the upbeat jobs data from September and unexpectedly high inflation figures posed challenges to those expectations.