The Fed’s Announcement About Cutting Interest Rates, Crypto Market is Compactly Green
NewYork – The crypto market strengthened collectively today, Thursday (13/6/2024) after the United States (US) central bank (The Fed) projected that there was still hope of cutting interest rates this year.
Referring to CoinMarketCap on Thursday (13/6/2024) at 09:04 WIB, the crypto market strengthened compactly. Bitcoin rose 1.16% to US$67,931.9 while on a weekly basis it was in the negative 4.5% zone.
Ethereum was in the green zone 1.75% in the last 24 hours while it weakened 8.37% in the week. BNB strengthened 2.78% daily even though it still fell 2.87% weekly.
Likewise, Dogecoin experienced an appreciation of 5.75% in the last 24 hours while in the last seven days it collapsed 11.73%.
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Crypto Performance (13/4/2024)
CoinDesk Market Index (CMI), which is an index to measure the market capitalization-weighted performance of the digital asset market, rose 2.01% to 2,674.37. Open interest depreciated 0.51% to US$66.83 billion.
Meanwhile, the fear & greed index reported by coinmarketcap.com shows the number 58, which shows that the market is in a neutral phase with the current economic conditions and crypto industry.
Quoted from coindesk.com, the Federal Open Market Committee (FOMC) of the US Federal Reserve on Wednesday maintained the Fed Funds benchmark interest rate range at 5.25%-5.50%, but the economic outlook is now only calls for a 25 basis point cut in interest rates this year.
“In recent months, there has been little progress toward the Committee’s 2% inflation goal,” the FOMC said in its policy statement.
Updating its economic projections, the Fed’s median expectation for interest rates until the end of 2024 is now 5.1% compared to 4.6% three months ago.
This means the central bank anticipates only one interest rate cut of 25 basis points this year compared to 75 basis points in the previous year.
Fed funds expectations at the end of 2025 are now 4.1%, suggesting a 100 basis point rate cut next year.
With the hope of cutting interest rates this year, risk assets such as crypto are observed to be experiencing a rebound.