Bitcoin (BTC) has surged 3.5% over the previous 24 hours, surpassing $61,000 as soon as once more, following the discharge of bullish Fed minutes from its July assembly on August 21.
Ethereum (ETH) recorded development of 1.5% over the identical interval, whereas Solana (SOL) remained within the pink on the day, down 0.6% on the time of writing.
The abstract of the minutes highlights current feedback from Fed Chairman Jerome Powell. remarks If market information continues to be consistent with expectations, rates of interest could also be lowered, the doc stated.
“Most members imagine that if the information proceed to emerge broadly consistent with expectations, it’s going to probably be acceptable to ease coverage on the subsequent assembly.”
Notably, the doc additionally suggests a 25 foundation factors (bps) minimize in rates of interest on account of “current inflationary developments” and “rising unemployment,” which might carry the bottom rate of interest as much as 5% from the present 5.25%.
The information is constructive for cryptocurrencies and different threat property as falling bond yields make them extra engaging.
The inventory market additionally reacted favorably to the Fed minutes, with the S&P 500, Nasdaq and Dow Jones closing up 0.42%, 0.57% and 0.14%, respectively.
Curiously, the likelihood of a 25bps fee minimize is Fell Within the polymarket, expectations of a fee hike following the discharge of the Fed minutes have risen from 77% to 72%, whereas the likelihood of a 50bps or larger hike has risen from 18% to 22%.
US elections might push costs down
Regardless of the opportunity of a bullish consequence in September, Bitfinex analysts imagine a very powerful story affecting the cryptocurrency market is the upcoming US presidential election.
In accordance with analysts:
“The possibilities of Democratic candidate Harris profitable have risen to nearly the identical as these of Republican candidate former President Trump, creating uncertainty within the markets, particularly cryptocurrencies.”
Former President Donald Trump gave Vice President Kamala Harris a ten% likelihood of profitable the election. Trump's His odds within the polymarket have rebounded to 52%, 5% forward of the Democratic candidate, whose odds have dropped to 47%.
Nonetheless, regardless of the election consequence remaining unclear, Bitfinex analysts imagine that if the possibilities of a Trump victory have already bottomed out, the market will probably recuperate.
