Financial markets are reacting positively to the latest announcement from the Fed, including crypto.
Fed confirms interest rate cut is coming, Bitcoin price approaches $65,000 mark. Photo: Reuters
The information that the US stock market is most interested in in the past hours is the latest statement from the Chairman of the US Federal Reserve (Fed) Jerome Powell , who finally made a long-awaited statement by investors about adjusting interest rates.
Accordingly, in an interview with the press at the Jackson Hole financial conference, Mr. Powell said:
“It is time to start cutting rates. The direction of the upcoming adjustment is clear, but the timing and extent of the reduction will depend on the actual data, the upcoming outlook and the balance of risks.”
Federal Reserve Chair Jerome Powell laid the groundwork Friday for interest rate cuts ahead, though he declined to provide exact indications on timing or extent. https://t.co/xe3ScXNRXG pic.twitter.com/wFvAaAdD6u
— CNBC (@CNBC) August 23, 2024
Financial analysts predict that there is a 67.5% chance that the Fed will cut interest rates by 0.25% at the FOMC meeting on September 19, while the odds of a 0.5% cut are 32.5%.
The Fed's interest rate is currently at 5.5%, the highest level in two decades, and has been kept there since July 2023. This is the Fed's response to the out-of-control inflation in the US in 2020-2021, when the country had to pump a huge amount of money to support businesses and people in the context of the COVID pandemic disrupting the world's largest economy.
The Fed's interest rate adjustment history over the past 10 years. Photo: Trading Economics (August 24, 2024)
US inflation in July 2024 was 2.9%, although it has not yet returned to the 2% target set by the Fed at the time of raising interest rates, but it has decreased significantly compared to the 9.1% mark in mid-2022, the highest level in 40 years.
Major US stock market indexes rose 1-1.8% on August 23, showing investors' excitement at the end of the high interest rate period.
Meanwhile, Bitcoin price recorded a significant increase from 60,800 USD to 64,955 USD, returning to the price range of early August, before the terrible dump to 49,000 USD .
1h chart of BTC/ USDT pair on Binance exchange at 08:55 AM on 08/24/2024
Altcoins in the top 100 also saw clear gains on the news, with many coins posting 24-hour gains of between 5 and 20%.
Price movements of cryptocurrencies in the top 100 Capital , screenshot of CryptoBubbles at 09:00 AM on August 24, 2024
Liquidation in the crypto market in the past 12 hours reached more than $150 million, with Short accounting for 79%.
Liquidation data on the crypto Derivative market, CoinGlass screenshot at 08:55 AM on 08/24/2024
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