Bitcoin

Bitcoin and Ethereum Prices Fall as Fed Signals Rate Cut in 2024

Published

8 months ago

12 June, 2024

Bitcoin and Ethereum Prices Fall as Fed Signals Rate Cut in 2024

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Cryptocurrency prices fluctuated on Wednesday as investors analyzed comments from the Federal Reserve that provided new insight into the U.S. central bank’s fight against inflation.

Policymakers’ decision to keep interest rates unchanged for the 11th consecutive month was a foregone conclusion, based on movements in the Fed futures markets. In its most restrictive stance in more than 20 years, the Fed maintained its policy rate. reference interest in a range between 5.25% and 5.50%.

This month’s release of the so-called “dot plot,” however, suggested that U.S. central bank interlocutors have registered a notable change in financial conditions since March. The Fed, in its most recent Summary of Economic Projections, had predicted three cuts in rates until the end of the year.

The dot plot released on Wednesday suggests that Fed policymakers now think a rate cut could be more appropriate – interpreted by the market as a sign of a hard line. The projection went beyond the two rate cuts that economists had hoped the Fed might telegraph, as it aims to keep rates higher for longer in the face of a strong U.S. economy and job market.

Cryptocurrency prices rose earlier in the day on news that inflation had slowed to 3.3% in the 12 months to May. The report indicated that consumer prices for American goods and services rose slightly less last month than economists had expected.

After the Fed’s announcement, Bitcoin and other cryptocurrencies fell. Just 15 minutes after the Fed’s decision, for example, the price of Bitcoin quickly fell 1.2% to around $69,000 from $69,900. Meanwhile, prices of Ethereum and Solana also fell at similar rates.

The Fed has said in recent months that it will not cut rates until it has “gained greater confidence that inflation is moving sustainably toward 2%.” Federal Reserve Chairman Jerome Powell affirmed that position on Wednesday and said, “So far this year, the data has not given us that greater confidence.”

“Recent indicators suggest that economic activity has continued to expand at a solid pace,” Powell added in a statement. “In recent months, there has been modest progress towards the Committee’s 2% inflation target.”

Before the conclusion of the Fed policy meeting, futures traders drawn in pencil a 61% probability that the Fed will cut rates in September, likely providing a boost to the US economy through lower interest rates. That number dropped to 59% after the release of Powell’s written comments.

Not long before US inflation peaked at 9.1% in June 2022, the Fed began raising interest rates from near zero to cool a surging economy. Although inflation has declined significantly since then, Powell said Wednesday that the U.S. central bank’s quest for 2% is not over.

Powell pointed to Wednesday’s Consumer Price Index report, where inflation remained flat month over month in May, as a sign of potential progress. “Let me say that we welcome today’s reading and look forward to more like it,” he said.

“The Committee would be prepared to adjust the monetary policy stance as appropriate if risks emerge that could impede the achievement of the Committee’s objectives,” Powell added, one of which is “maximum employment” among U.S. workers.

The price of so-called risky assets, including stocks and cryptocurrencies, typically faces pressure as interest rates rise and payments for holding cash and U.S. Treasury bonds become more attractive. Investors predict the opposite will happen as the Fed eases U.S. monetary conditions.

“We cannot know what the future holds, but in the meantime we have made good progress on inflation with our current position,” Powell said, adding that the Fed seeks a gradual decline in inflation and a greater balance in the economy. the work market. “We’re making good progress here.”

Edited by Andrew Hayward

Editor’s note: This story was updated after publication to add one more quote from Powell.

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Bitcoin

What to watch for in the markets

Published

7 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

7 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

7 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

7 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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