Powell Hints At September Rate Cut, US Stocks Surge, Bitcoin Fall To 64K
According to BlockBeats, the US Federal Reserve said that it would keep the benchmark interest rate between 5.25% and 5.5%. However, during a post-meeting press conference, Fed Chairman Jerome Powell hinted at a possible rate decrease in September, sparking a big spike in US stock markets. The S&P 500 jumped 1.58%, while the Nasdaq rose 2.64%, boosted by increases in tech equities such as Nvidia and TSMC.
Despite the favourable advance in the stock market, Bitcoin fell from above $66,000 to $64,783, representing an almost 2% dip in 24 hours.
Powell said that no decisions had rate drop might be imposed as early as September if economic data shows a slowing in inflation. He stated, “If we pass this test, our policy rate could be reduced as early as the next meeting in September.” The CME’s FedWatch tool indicates that traders predict a 25 basis point rate drop at each of the three remaining rate meetings this year.
Powell’s dovish statements prompted a broad surge in US markets. The S&P 500 increased by 1.58%, while the Nasdaq increased by 2.64%, with tech titans such as Nvidia and TSMC leading the way. However, Bitcoin has not followed the stock market’s rising trajectory. Instead, it declined from more than $66,000 to $64,783 by the end of the press conference, reflecting a nearly 2% drop over the past 24 hours. In other market developments, the smaller version of the Greyscale Bitcoin Trust (GBTC) was officially listed yesterday, with no further outflows reported. In addition, after six days of trading, the nine Ethereum spot ETFs had their first net inflow of $33.7 million. This shift is due to a reduction in major outflows from Grayscale’s ETHE. Meanwhile, BlackRock’s chief investment officer stated that certain investment banks are considering integrating Ethereum ETFs in their portfolio. Ethereum’s price fluctuation was similar to Bitcoin’s, dropping from above $3,300 to $3,232 by the end of the press conference.
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Source : Binance