TL;DR
- Market expectations of a potential rate cut by the Federal Reserve have driven up the prices of several cryptocurrencies.
- The price of Bitcoin (BTC) rose by 1.7% to $61,500 and briefly exceeded $62,000 following Jerome Powell’s comments about a potential interest rate cut.
- Ethereum (ETH) and Solana (SOL) also saw increases, with ETH rising 2.2% to $2,675 and SOL growing 0.9% to near $145.
The crypto market responded positively to comments from Federal Reserve Chairman Jerome Powell, who suggested the possibility of an imminent interest rate cut. During his speech at the Jackson Hole Economic Policy Symposium in Wyoming, Powell indicated that the time to adjust monetary policy is approaching, hinting at a possible easing in the fight against inflation, while the Federal Reserve is also paying attention to the weakening labor market.
In the past 24 hours, Bitcoin (BTC) saw a 1.7% increase in price, reaching $61,500, and briefly surpassed $62,000 following Powell’s remarks. This trend extended broadly across the cryptocurrency market.
Ethereum (ETH) also rose 2.2%, with its current value around $2,675. Meanwhile, Solana (SOL) grew 0.9% and approached $145 per unit. BNB (BNB) showed similar performance to SOL, with its current value around $581.
Other cryptocurrencies with strong performances included Cardano (ADA), which is trading at $0.3834 after a 3% increase in 24 hours, and Dogecoin (DOGE), which surpassed $0.11 thanks to a 4% surge. Lastly, Toncoin (TON) and XRP (XRP) are trading at $6.61 and $0.6011, with bullish variations of 1% and 0.6%, respectively.
A Relief for the Crypto Market
Powell emphasized that the future direction of monetary policy will depend on incoming economic data, evolving outlooks, and the balance of risks. These statements have heightened market expectations of a potential rate cut by the Federal Reserve, which has kept interest rates steady since July 2023. According to CME Fedwatch data, traders estimate a 32% chance of a 0.50% rate cut in September and a 67% chance of a 0.25% cut.
The impact of these expectations was reflected in the cryptocurrency market, driving up the prices of Bitcoin and other major cryptocurrencies. This market reaction suggests an anticipation of a more favorable economic environment for the crypto industry.
