Tag Archives: federal reserve

Bitcoin’s correlation with the U.S. equities market has been rising for more than a month, as seen in the collective plunge and rally across different asset classes during the Japanese yen crisis earlier this month and the Federal Reserve’s statements at the Jackson Hole symposium last week. According to the recent edition of the Bitfinex Alpha report, the Pearson Correlation metric, which measures the relative correlation of bitcoin (BTC) with the S&P 500 and the NASDAQ,...

The current U.S. benchmark rate for massive overnight money market loans from the central bank is in the range of 5.25% and 5.5%. When Powell spoke in Jackson Hole, Wyoming, on Friday, markets expected more signals of a regime of interest rate cutting ahead. Instead, he went a step further and explicitly endorsed rate cuts. In fact, he said it’s not a matter of if there will be cuts but how deep to make them: “The time has come for policy to adjust. The direction of travel is...

The business week ends with high levels of volatility as bitcoin’s price soared to almost $64,000 for the first time since the start of the month. This rally, which was mostly mimicked by the altcoins, was possibly fueled by the latest developments on the US front and its central bank in particular. CryptoPotato reported earlier today that BTC had maintained above $61,000 after yesterday’s failure to conquer $62,000. However, the asset touched that level earlier today after...

Federal Reserve chairman Jerome Powell promised to start cutting interest rates during his speech at the annual 2024 Jackson Hole Economic Symposium on Friday. This will mark the central bank’s first rate cut since 2020, and is already proving bullish for Bitcoin’s price. The Fed Pivot Is Confirmed “The time has come for policy to adjust,” Powell told the crowd. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving...

The first half of 2024 was more than successful for Bitcoin (BTC), whose price reached an all-time high of over $73,500 in mid-March. It currently trades for an increase of around 115% on a yearly scale. In the following lines, we will touch upon some essential factors and upcoming events that could push BTC to a new price peak before the end of the year. The US Presidential Elections The result of the voting (scheduled for November this year) could trigger enhanced...

Bitcoin’s price has stagnated since its March peak due to tight U.S. monetary policy, which has reduced stablecoin supply, according to CryptoQuant analysts. “The reason for Bitcoin’s inability to rally further is fundamentally due to the tightening monetary policy in the U.S. since March 2022,” they reported on July 3. As a result, the overall stablecoin supply started to decline in early 2022 when the Federal Reserve started raising interest rates. Conditions for $BTC to...

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There will be no sharp correction following any potential interest rate cuts by the U.S. central bank in September or November. This is the prediction from analyst ‘RamenPanda’ who explained their thinking in a lengthy post on X on June 27. The analyst noted that during times of financial crisis, such as in 2008, the Fed cuts rates to preserve the economy. However, in that scenario, markets fared worse, and stocks fell following the cuts. We all know it’s pretty certain that...

A hawkish-than-expected FOMC meeting drove investors to scale back their exposure to fixed-supply assets, which in turn resulted in digital assets investment products seeing outflows of $600 million. This represented the largest outflows since March 22, 2024. Moreover, the recent price declines further exacerbated the bearish sentiment, as evidenced in the decrease in total assets under management (AuM), which fell from over $100 billion to $94 billion this week. Investors...

The Federal Reserve announced on Wednesday that it would not change its policy interest rate despite increasing political pressure to change course. No Rate Cuts Yet, Says Federal Reserve In a press release, the Federal Reserve declared that job growth and economic expansion have “remained strong” while inflation has only seen “modest progress” towards its 2% target. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that...