Powell’s Words Make Crypto Full of Smiles, Bitcoin Cs Skyrockets
SUKMABOLA – The crypto market experienced an increase today, Saturday (24/8/2024) after the United States (US) central bank The Fed made it clearer that it would cut interest rates next month.
Referring to CoinMarketCap on Saturday (24/8/2024) at 07:19 WIB, the crypto market moved stronger. Bitcoin rose 5.75% to US$64,002.12 and was in the green zone at 8.72% on a weekly basis.
Ethereum strengthened 5.2% in the last 24 hours and in the week rose 6.61%.
BNB experienced an appreciation of 1.69% on a daily basis and in a week experienced a flight of 13.94%.
Likewise, Dogecoin crept up 6.91% in the last 24 hours and in the last seven days shot up 12.66%.
Crypto Performance (24/8/2024)
CoinDesk Market Index (CMI), which is an index to measure the market capitalization-weighted performance of the digital asset market, rose 5.89% to 2,397.51. Open interest appreciated 6.43% to US$60.05 billion.
The fear & greed index reported by coinmarketcap.com shows the number 56 which shows that the market is in a neutral phase with the current economic conditions and crypto industry.
Quoted from Coindesk.com, crypto prices which had been sluggish received two positive catalysts last Friday (23/8/2024). First, the Chair of the Fed, Jerome Powell, confirmed that the monetary easing cycle will begin next month. Second, crypto-friendly presidential candidate RFK Jr. threw his support behind crypto-friendly GOP presidential candidate Donald Trump in the presidential campaign.
Despite Kennedy dropping out and endorsing Trump, the presidential race still looks evenly matched, but current conventional thinking suggests that removing Kennedy from the voter rolls in battleground states would favor the GOP candidate.
Both Trump and Kennedy have promised to have a much friendlier stance towards Bitcoin and crypto compared to the current Biden administration. Trump even proposed that the US create a strategic reserve of bitcoin and promised the immediate dismissal of SEC Chairman Gary Gensler. The Harris campaign appears to have taken this to heart. A senior Harris advisor said earlier this week that a Harris administration would support the growth of the crypto industry.
Meanwhile, the Fed itself, through Powell, conveyed something that was welcomed positively by market players at the Jackson Hole Central Bank Symposium.
“It’s time for policy to adjust,” Powell said. “The direction of the move is clear, and the timing and speed of a rate cut will depend on incoming data, the evolving outlook and the balance of risks.”
Risk assets, one of which is the crypto market, received a breath of fresh air after Powell’s statement.