updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Wall Street banking giant UBS forecasts further Fed rate cuts later this year. This comes as Fed Governor Stephen Miran claims the US-Iran war and tariffs will not have long-term impacts on inflation, but expects three rate cuts instead of four in 2026. Bitcoin and gold will rise further if the Federal Reserve proceeds with
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Bitcoin rose for the third day in a row to hit a new all-time high above $76,000.
Per data from CoinGecko, the flagship cryptocurrency touched highs of $76,677 across major exchanges on Nov. 7. This comes after BTC broke to a new all-time high above $75k on Nov. 5 with news of Donald Trump winning the US presidential election.
The top crypto also moved higher to break above $76k as Kamala Harris conceded defeat and as US president Joe Biden confirmed he’d hand over power to the incoming 47th president.
On Nov. 7, Bitcoin price made a new all-time high above $76.6k as the Federal Reserve announced a 25 basis points interest rate cut. The news coming on the back of Trump’s win added to the positive buzz across the risk asset markets.
Fed’s rate cut is the second one after the 50 bps cut in September. The move follows slowing inflation data and a cooler jobs market. The market is likely to rally higher given Fed’s rate cut and Chair Jerome Powell’s remarks. Is “cheap capital” set to enter the market? Investor and entrepreneur Anthony Pompliano thinks so.
BREAKING: The Federal Reserve has cut interest rates by 25 basis points.
Cheap capital is coming to the market.
— Anthony Pompliano
(@APompliano) November 7, 2024
BTC led cryptocurrencies in a brief pump, with Ethereum, Solana and BNB recording some notable gains.
ETH for instance crossed the $2,880 mark with an intraday surge from $2,717. SOL broke into the top four by market cap after surging to near $198, flipping BNB with its market cap above $92.8 billion.
Meanwhile, BNB crossed $600 for the first time since late October as it hit highs above $610. The coin’s market cap as of writing was $87.3 billion.
September brought stronger-than-expected growth in retail sales that clouded possible US Fed rate cut. This, coupled with an unexpected drop in new jobless claims gives a potential, short-lived boost to the economy and crypto market.
Meanwhile, the ECB resorted to a third rate cut this year influenced by the weak growth outlook and the inflation scare.
The outlook for the next US Fed rate decision was clouded by stronger-than-expected retail sales and a decline in jobless claims. This signaled resilient economic activity despite mixed data. Meanwhile, the European Central Bank’s recent rate cut to 3.25%, its third of the year.
These factors contribute to a complex backdrop for the crypto market. Lower rate typically support risk assets like Bitcoin. Yet, persistent uncertainty leads to temporary downward pressure on digital asset prices.
The S&P 500 managed to inch higher at the opening bell following that news. The market was acting optimistic, but there were caution signals as the trends were not likely to last longer.
Stronger-than-expected retail sales data raised some questions. most of them were regarding the Fed possibly holding off on easing rates at December meeting. Those concerns were tempered as a weak industrial production report clouded the overall economic outlook. Mixed signals on the economy’s momentum haven’t stopped markets from betting on a near-term rate cut.
US Treasury yields climbed Thursday after good economic signals emanated from fresh data. The 10-year Treasury yield was up over 5 basis points to 4.071%, while the 2-year yield added five basis points to 3.993%.
However, claims for jobless benefits fell to 241,000 in a week. This is well below the forecast that continued to show labor markets’ resilience. The data underpinned an underlying economic vitality that contradicts the expectations of impending US Fed rate cuts, which officials had raised several times this week.
Some expert think the fact that inflation was up, might also help Bitcoin to rocket. Just recently reports showed that inflation has come in hotter than expected at 1.8% in September, as compared to market expectations of 1.6%.
Similar to the US Fed rate cut, the European Central Bank cut its key interest rate to 3.25% at an October meeting. This was the third 0.25% cut this year. The move had been expected after policymakers had indicated that the economic outlook was weakening and inflation pressures were easing. In a statement, the ECB’s Governing Council said the disinflation process was “well on track”. This represents the most optimistic outlook during this cycle.
Inflation in the euro zone slowed to 1.8% in September—below the ECB’s target of 2% for the first time in three years. Even so, the central bank still sees a risk of temporary increases that could temporarily push inflation above the target. This is the first consecutive rate cut from the ECB since December 2011.
ECB President Christine Lagarde said the central bank discussed only a 25bp cut and not a larger 50bp cut. This contrasts with the US Federal Reserve’s decision in September to cut by 50bps.
The market hasn’t reacted positively despite the ECB recent rate cut to 3.25%, which is typically a favorable condition for cryptocurrencies. Several macroeconomic factors are contributing to this unexpected trend.
September’s stronger-than-expected retail sales and a drop in the US jobless claims signal continued economic resilience. This has led to a rise in Treasury yields, which makes traditional investments more attractive. However it dampens demand for alternative assets like crypto.
Additionally, concerns persist about the sustainability of the economic recovery. While lower rates generally support growth and may eventually benefit digital assets, uncertainty about future Fed policy create a cautious environment for investors.
This could result in temporary pressure on crypto prices even in the face of easing monetary policy. As markets digest these factors, the potential for a rebound remains. This will happen if future economic indicators align with expectations of continued US Fed rate cuts or if inflation shows signs of further decline in the US and the eurozone.
Teuta
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
US Fed rate cuts is a key focus among global stock and crypto markets this week as they seek additional cues for market direction in the coming weeks. JPMorgan and Goldman Sachs eye a modest 25 bps rate cut by the US Federal Reserve as markets look for 50 bps rate cuts due to elections. Will Bitcoin price dip or consolidate after the interest rate cut on September 18?
Some Wall Street giants expect an aggressive 50 bps rate cut by the US Fed while some such as investment bank Goldman Sachs and JPMorgan expect 25 bps. Interestingly, JPMorgan Global Research Chair Joyce Chang expects a 50 bps rate cut, and JPMorgan CEO Jamie Dimon still warns about recession and inflation. Recently, JPMorgan dismissed bull market speculations after Fed rate cuts.
Goldman Sachs anticipates a minor, near-term setback for gold if the Federal Reserve opts for just a 25 bps cut this week, reported Bloomberg on Sep. 17. “Fed rate cuts are poised to bring Western capital back into gold ETFs, a component largely absent of the sharp gold rally observed in the last two years,” analysts Lina Thomas and Daan Struyven said in a note to clients.
Goldman sees a boost in capital flows to gold ETF and gold prices gradually in months after the setback. The investment bank expects a more modest 25 bps Fed rate cut. Gold price has rallied massively this year, but Bitcoin price has also rallied nearly 35% YTD.
Meanwhile, JPMorgan advocated for a 50 bps Fed rate cut on Wednesday, with easing a total of 100 bps rates this year. JPMorgan Global Research Chair Joyce Chang expects a 50 bps rate cut.
However, David Kelly, chief global strategist at JPMorgan Chase, said the biggest risks facing the economy and the market are the Fed’s aggressive actions or Chair Jerome Powell speaking negatively. He predicts that the Federal Reserve will cut interest rates by 25 instead of 50 bps.
A 50 bps Fed rate cut will drive massive activity in the markets, increasing volatility. According to CME FedWatch tool, there’s a 69% probability of a 50 bps rate cut and 31% odds of a 25 bps in after the FOMC meeting. Also, the data indicates a total of 125 bps Fed rate cuts this year. This may trigger a massive Bitcoin price rally, but with volatility.
Bitcoin is trading sideways amid the FOMC meeting, as predicted by CoinGape. A 50 bps rate cut will boost sentiment, but price momentum will remain volatile.
BTC price is currently trading at $58,533. The 24-hour low and high are $57,501 and $59,154, respectively. Furthermore, the trading volume has increased by 15% in the last 24 hours.
The rate cut decision on September 18 could trigger a risk-on scenario, pushing BTC price higher, or a risk-off outlook, leading to panic selling. BTC price forecast looks at market direction as Tether mints $1 billion USDT ahead of Fed rate cuts.
Crypto analyst Ali Martinez said “In the lower timeframes, the TD Sequential flashes a sell signal for Bitcoin while both the RSI and Stochastic RSI show oversold conditions. A potential correction looms unless can sustain a candlestick close above $58,800.”
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Amid strong demand and inflows continuing in spot Bitcoin ETFs, issuers have escalated the fee war. On Monday, January 29, Investco and Galaxy Digital announced the reduction in their spot Bitcoin ETF fees by 35% from 39 bps to now at 25 bps.
As per the latest statement, the expense ratio for the Invesco Galaxy Bitcoin ETF (BTCO) will be reduced to 0.25%, down from its previous rate of 0.39%. The fund will waive its fees for the initial six months or until it accumulates $5 billion in assets, whichever comes first.
We have @InvescoUS & @galaxyhq cutting the long term fee on their #Bitcoin ETF from 39 bps to 25 bps.
(Yes they have the fee waiver to 0% for first 6 months or $5 billion in assets). Story from @emily_graffeo & @kgreifeld pic.twitter.com/Erk2NU9kVF
— James Seyffart (@JSeyff) January 29, 2024
This move adds to the existing trend of issuers lowering costs in the emerging industry, even preceding the approval of spot Bitcoin ETFs by US regulators earlier this month. Notable industry players like BlackRock Inc. and Fidelity, leveraging their extensive distribution networks, have surged ahead.
Together, they have amassed around $4 billion in combined investor inflows, constituting approximately 70% of total spot Bitcoin ETF inflows. In comparison, BTCO currently holds the fifth position with an approximate haul of $283 million. These massive inflows in Bitcoin ETF continue while the GBTC registers a drop in net outflows.
Despite the fee reduction on Monday, BTCO doesn’t claim the title of the cheapest spot Bitcoin ETF available. Franklin Templeton’s fund boasts a post-waiver expense ratio of 0.19%, making it the most economical among spot Bitcoin ETFs. On Monday, BTCO’s shares experienced a 2.8% increase, mirroring the surge in Bitcoin price.
The recent developments have served as a catalyst to the Bitcoin price with some analysts predicting a surge to $50,000 before the Bitcoin halving. Some of the market veterans are very bullish for Bitcoin post the halving in April 2024.
Anthony Scaramucci, the founder of SkyBridge Capital, anticipates that the next Bitcoin (BTC) halving will propel the cryptocurrency’s price to $170,000 per coin. This projection is grounded in Bitcoin’s historical pattern of reaching new all-time highs after each halving, which occurs approximately every four years and reduces the rate at which new BTC is generated by half. Speaking on the Scott Melker podcast last week, Scaramucci said:
“Go back and look at Bitcoin halving cycles. The day that Bitcoin halves, multiply it by four [and] 18 months later and it’s been uncanny that that’s been the price of Bitcoin.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Adhering to the market expectation, the Federal Open Market Committee (FOMC) decided in the September 20, 2023 meeting to keep the benchmark federal funds rate steady at the current target rate of 5.25-5.50%. The committee said it intends to prioritize balancing the employment figures along with achieving the 2% inflation target.
Also Read: US Fed May Have To Raise Rates Thrice More: Vanguard
The Fed officials said inflation remains elevated while the unemployment rate has remained low. Going further, the committee will assess additional information and its implications for monetary policy, in deciding future rates, it added. Reiterating its previous stance, the FOMC said it is committed to returning inflation to its 2 percent target. The FOMC statement said,
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.”
John Authers, senior editor at Bloomberg, said the market participants have so far considered this as a hawkish pause from the FOMC. Meanwhile, the Bitcoin price remained flat in its initial reaction to the Fed rate announcement. Jerome H. Powell, the Chair of the US Federal Reserve, will deliver his post FOMC speech in a live press conference, where he may spill out the Fed’s outlook on inflation target for upcoming meetings.
WATCH LIVE TODAY: Press conference with #FOMC Chair Powell at 2:30 p.m. ET: https://t.co/1uJrua5qsHhttps://t.co/FJa6TbkDMt pic.twitter.com/V7gINNUKP1
— Federal Reserve (@federalreserve) September 20, 2023
The FOMC statement indicated a hint of hawkish stance taken by the Fed officials, with reference to considering additional policy firming if appropriate to reach the inflation target. The committee said it will consider the cumulative tightening of monetary policy so far, its impact on the economic activity and incoming inflation data in deciding further tightening of policy. More importantly, does this mean the possibility of rate cuts has further extended sometime in the year 2024?
Also Read: XRP Lawsuit Settlement: Attorney Says US SEC Not Ready Yet
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
As the global economy continues to recover from the COVID-19 pandemic, the Eurozone is facing increasing chances of inflationary pressures.
In a bid to address the persistent challenge of inflation, the European Central Bank (ECB) recently took a significant step by announcing a 25 basis points rate hike, raising its main rate to 3.75%.
This decision comes amid a backdrop of economic recovery in the Eurozone and rising concerns over surging inflation rates. According to recent data, headline inflation in the Eurozone declined to 5.5% in June from 6.1% in May. While this marks a reduction, the rate is still significantly above the ECB’s target of 2% for price stability.
The ECB noted in a statement released earlier today that inflation is showing indications of lowering; nonetheless, it is projected to stay persistently high for a lengthy period of time. This comes amid worries over the economy’s recovery and its possible impact on individuals and businesses.
The ECB’s recent 25 basis point rate hike was broadly in line with market forecasts, but it has investors and companies anxiously awaiting the central bank’s attitude in the post-summer period.
As the Eurozone grapples with the recovery from the COVID-19 pandemic, there are lingering concerns about whether the ECB’s monetary policy measures might inadvertently push the region into an economic recession.
With the potential dampening effect of higher interest rates on consumer spending and business investments, some market players worry that the rate hike could hinder the fragile economic recovery. The central bank faces a delicate balancing act, as it aims to combat inflationary pressures while also supporting economic growth.
A notable aspect of the recent ECB announcement was the absence of forward guidance regarding future policy moves. The central bank did not provide clear indications of its intentions beyond the rate hike.
As the global economy continues to recover from the COVID-19 pandemic, the Eurozone is facing increasing chances of inflationary pressures. Several factors are contributing to the rising concerns about inflation in the region.
Firstly, the European Central Bank (ECB) has recently published a survey revealing a significant and concerning trend in the euro zone’s corporate loans. The data showed that between mid-June and early July, corporate loans dropped to their lowest level ever. This decline in lending to businesses raises concerns about the state of the region’s economic recovery and the challenges faced by businesses.
Adding to concerns about the eurozone’s economic future, statistics on business activity released earlier this week showed dips in two of the region’s main economies, Germany and France.
Further contributing to the economic apprehensions, the International Monetary Fund (IMF) released its projections for the eurozone’s economic growth this year. The IMF predicts that the region’s economy would increase by 0.9% in 2023. However, this prediction takes into account the possibility of a recession in Germany, where GDP is predicted to drop by 0.3%.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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Crypto News: In line with the market expectation, the US Federal Reserve’s Federal Open Market Committee (FOMC) on Wednesday delivered a 25 bps rate hike decision, taking the rates to the highest level in over 22 years. This brings the current target rate to the 525-550 bps range. The Fed noted that job gains have been robust in recent months, and that the unemployment rate has remained low, whereas inflation remained elevated. Meanwhile, the Bitcoin price reacted with slight dip in its initial reaction to the news of the FOMC rate hike, before assuming gains.
Also Read: Terra Luna Classic To Burn 800 Million Tokens, LUNC And USTC To $1?
In recent statements, the Fed officials have been warning of the possibility of two more rate hikes in the current year. This means there could likely be one more rate hike coming in 2023, after the rates already reaching the highest level since 2001. The FOMC reiterated that its target is to achieve maximum employment and limit inflation at the rate of 2 per cent over the longer run. Analysts predict that if the rate hike pause kicks in from the next FOMC meet, the January 2024 meeting could likely deliver the first rate cut.
“In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy.”
Meanwhile, the Bitcoin Price (BTC) could potentially reach new highs in the current year as the crypto market is likely to become increasingly bullish over the Bitcoin halving around April 2024. In the lead up to the Fed meeting, the BTC price has barely fluctuated, remaining flat compared to 24 hours ago. It remains to be seen how the crypto market will react to this news as it was on a widely expected lines.
Also, US Fed Chair Jerome Powell is scheduled to deliver his much awaited comments on the FOMC’s position in a post meeting press conference.
Also Read: FOX Sr. Journalist Calls Ripple Case Ruling “Dual Notion”; XRP Lawyer Replies
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin and Ethereum prices witness retracements after the Bank of England hiked interest rates by 50 bps to 5% for the 13th straight time and reveals more hikes will come to bring inflation down to the 2% target. The larger-than-expected hike comes after the UK’s annual inflation for May stayed at 8.7% and the core inflation rate rose to 7.1%.
“Bringing inflation down is our absolute priority,” says Bank of England Governor Andrew Bailey, after a surprise 50 bps rate hike to tackle persistent inflation. The Monetary Policy Committee comprising nine members of the Bank of England has voted 7-2 in favor of an increase to 5%, marking the highest level in 15 years and the most significant change since February.
Also Read: Ripple Gets Major Payments Institution License in Singapore, XRP Price To $1
US Federal Reserve Chair Jerome Powell in a testimony to the US House Financial Services Committee on Wednesday revealed that the interest rate pause is temporary. He added that further rate hikes are likely if the US economy maintained its current course.
On Thursday, Powell in testimony to the Senate Banking Committee will make it clear that the Fed is not done hiking interest rates. The market expects two rate hikes by year-end. According to CME FedWatch Tool, the probability of a 25 bps hike at the July 26 FOMC meeting jumped to 75%.
Meanwhile, treasury yields rise as global central banks set to continue hiking interest rates. The US Dollar index (DXY) that fell below 102 is again rising towards 102.50 after BOE rate hikes, which will put some pressure on Bitcoin price.
Read More: Powell Says “Pause” Is Temporary; Expert Reveals Reason Behind Bitcoin, Ethereum, Altcoins Rally
Bitcoin price hit a high of $30,737 in the recent rally, reaching almost to the April high of $31,000. BTC price fell below $30,000 after the Bank of England’s surprise 50 bps rate hike. However, the positive sentiment for Bitcoin to $35k still remains among traders amid accumulation by whales.
Popular analyst Michael van de Poppe predicts consolidation in the $29k-$30k range, with optimal entry at $28,500 after a correction. Price action likely to move this way as Bitcoin has strong resistance at $31,000.
Meanwhile, ETH price also fell to $1900. The 24-hour low and high are $1815 and $1932, respectively. Furthermore, the trading volume increased in the last 24 hours, indicating interest among traders.
Also Read: Elon Musk-Mark Zuckerberg “Cage Fight”: Everything You Need To Know
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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