- Powell’s speech hinted at upcoming rate cuts, leading to a surge in crypto prices.
- BTC saw a notable rise after Powell’s hint at possible interest velocity reductions.
- The likely rate cuts may further boost the digital asset sector in the coming weeks.
Federal Reserve Chair Jerome Powell’s speech on August 23, 2024, has already been directed at upcoming interest rate cuts among investors and traders. This announcement led to a rapid rally in currency exchanges. He said, “The time has come for policy to adjust,” signalling the Federal Reserve’s plan to lower interest rates. The financial markets reacted immediately, especially in the virtual currency and stock industries.
Cryptocurrency Market Reaction
After Powell’s speech, the crypto market saw a strong increase. BTC rose by over 2%, while Ethereum gained 3%. SOL and Dogecoin also grew by 1.5% and 5%, respectively. The overall exchange rate went up by 0.61% within hours of the announcement. Investors now expect a 50 basis notes rate cut in September. However, a smaller 25 basis points cut is still possible depending on upcoming data.
In addition to discussing rate cuts, he highlighted concerns about the labour industry. He stated that it poses a bigger threat to the financial system than inflation. Powell emphasised that, while inflation is important, the labour market’s issues require urgent attention. He assured that the Federal Reserve is committed to supporting a strong job market. This goal aligns with their broader aim of maintaining price stability. The state of the labour exchange will play a key role in the Fed’s future decisions.
Impact on Cryptocurrency
The possibility of rate cuts and a weakening dollar is expected to stimulate the digital currency economy further. Analysts like David Brickell of FRNT Financial believe Bitcoin could reach new record highs. The evolving economic conditions may drive Bitcoin to levels not seen before. BTC is already at a critical level. If it closes above $62,200, it could rise to $68,000 or even $71,000 soon.
This potential increase would signal a major boost in the crypto market, showing the market’s strong response to Powell’s words.
The post Powell’s Signal for Rate Cuts Ignites Major Cryptocurrency Market Rally appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed