Bitcoin’s price went up to over $62,000, and Ethereum reached $2,700 after Jerome Powell, the Chair of the US Federal Reserve, mentioned that Fed rate cuts are likely coming soon, possibly in September. Powell’s comments during his speech at the Jackson Hole event on Friday hinted that the Fed is planning Fed rate cuts, which caused a positive reaction in both the stock and crypto markets, leading to higher prices.
See Also: Cryptocurrency Comments By Kamala Harris Raise Concerns
Impact Of Fed Rate Cuts on The Market
Bitcoin’s price hit a high of $62,320 after Powell’s remarks suggested that Fed rate cuts could be on the way. Ethereum also rose to $2,700, though it later dropped back to around $2,680. During the Jackson Hole Symposium in Wyoming, Jerome Powell said that the central bank is looking into cutting interest rates. Although he didn’t provide exact details about when or how much the fed rates cuts might be reduced, Powell made it clear that a change in policy is needed because of slower inflation and a weaker job market in the US.
He emphasized that the Fed does not want to see further declines in the job market and said it’s time to make adjustments. As expected, Powell also mentioned that the timing and pace of the rate cuts would depend on new economic data and changing conditions. His comments strengthened the expectation of a rate cut in September, which led to an increase in stocks, bonds, and Bitcoin. According to the CME FedWatch tool, there is now a 67.5% chance of a 25 basis point rate cut in September, slightly down from 76% the day before. Even so, many people still expect the Fed to cut rates by 100 basis points this year. Additionally, US Treasury yields and the US dollar index (DXY) fell to their lowest levels in 14 months, which is seen as a positive sign for Bitcoin.
Analysts at Bank of America Securities pointed out that the S&P 500 usually doesn’t react much to the Jackson Hole meeting. So even if Jerome Powell takes a softer approach, it might not have a big impact on the market. Analyst Benjamin Cowen looked at how the ETH/BTC price behaved in 2016, 2020, and 2024. In 2016 and 2019, Ethereum saw its price rise in September, peaking around September 19 and 20. Cowen thinks prices might drop after the Fed rate cuts possibly leading to another increase later.
BTC’s price went up by 2% in just one hour and nearly 3% over the past 24 hours, with the current trading price around $61,700. The trading volume also increased in the last hour, showing more interest from traders. Similarly, Ethereum’s price rose by over 2% in the past 24 hours, with the current price at $2,666. The 24-hour low and high for Ethereum were $2,592 and $2,700. The trading volume for Ethereum also went up slightly, showing more activity in the market.
You can also join our Telegram community where you can learn all you want to know about the cryptocurrency space, defi, web3, and airdrop opportunities and also have access to live AMA sessions from time to time, then click the button below to join Dipprofit Telegram Community For Free Now
Discover more from Dipprofit
Subscribe to get the latest posts sent to your email.
