Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»ADOPTION NEWS»Risk sentiment for Bitcoin (BTC) recovers as Fed hints at rate cut
ADOPTION NEWS

Risk sentiment for Bitcoin (BTC) recovers as Fed hints at rate cut

By Crypto FlexsAugust 26, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Risk sentiment for Bitcoin (BTC) recovers as Fed hints at rate cut
Share
Facebook Twitter LinkedIn Pinterest Email

Peter Zhang
26 Aug 2024 12:33

Bitcoin (BTC) price surged to $65,000 as risk appetite returned after Federal Reserve Chairman Jerome Powell hinted at a possible rate cut.





Bitcoin (BTC) surged to $65,000 on August 23, reflecting a broader rally in risk assets following significant comments from Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium. Powell’s hints at a potential rate cut sent the U.S. dollar lower, boosting stocks and sending the S&P 500 close to its all-time high, according to Bitfinex Alpha.

Bitcoin price surge

Bitcoin, which has been underperforming stocks, surged 6.06% in one day, marking its second-largest one-day move since May. The rally came against a backdrop of increasing positive correlations between Bitcoin and U.S. stocks. Until recently, Bitcoin had been relatively weak since hitting its lows in early August.

The price surge also shows a significant increase in the correlation between Bitcoin and stocks, indicating a return of risk appetite in the market. There was also a notable short-term liquidation on August 23, with $40 million in BTC perpetual futures liquidated, and $140 million across all pairs. The decrease in open interest suggests a decrease in leverage in the market, which could lead to more room for price appreciation in Bitcoin and altcoins.

Market Trends

The current funding rates, which are significantly lower than at the beginning of the year, indicate a change in market dynamics. Leveraged traders are taking a more cautious approach despite the overall bullish sentiment. The bullishness is due to recent developments in the U.S. economy, leading to significant changes in monetary policy expectations, labor market dynamics, and business activity.

The Influence of the Federal Reserve System

In a much-anticipated speech at the Kansas City Federal Reserve Symposium in Jackson Hole, Federal Reserve Chairman Jerome Powell hinted at an upcoming adjustment in monetary policy, suggesting that a rate cut is likely. Labor market data contributed significantly to this change in stance, with the U.S. labor market adding fewer jobs than initially reported last year. That downgrade, combined with weaker-than-expected payrolls data for July, has raised concerns about the health of the labor market. Unemployment has hit a post-pandemic high of 4.3%, sparking concerns that the Fed may have delayed cutting rates too long.

But recent data, including weekly jobless claims, show the labor market is in a more controlled downturn.

International cooperation and cryptocurrency market development

Meanwhile, international cooperation to combat cryptocurrency-related crimes is increasing. China has successfully extradited an individual named Zhang from Thailand, who is accused of organizing a $14 billion cryptocurrency pyramid scheme. This is the first extradition of a financial crime suspect under the China-Thailand agreement signed in 2019.

On a positive note, Franklin Templeton has expanded its on-chain money market fund (FOBXX) by integrating with the Avalanche network. This move will allow investors to purchase tokenized stocks, further solidifying the fund’s presence in the blockchain space. The fund, which has already been established on Stellar and Polygon, primarily invests in low-risk U.S. government bonds and aims to leverage Avalanche’s technology to achieve sustained growth.

In another important development, BlackRock’s iShares Ethereum Trust (ETHA) has emerged as the leader in the Ethereum ETF space, becoming the first Ethereum ETF to surpass $1 billion in net inflows. This performance is particularly noteworthy given that Ethereum ETFs have generally seen lower inflows compared to Bitcoin. Grayscale’s ETHE, on the other hand, has seen significant outflows since becoming a public offering, highlighting the competitive landscape within Ethereum investment vehicles.

Image source: Shutterstock


Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

The Riot platform appoints Jonathan Gibbs as the chief data center manager.

June 3, 2025

ASTAR’s ACS campaign is finished with significant ecosystems.

June 3, 2025

AI influence exploration: The necessity of human verification in the digital world

June 3, 2025
Add A Comment

Comments are closed.

Recent Posts

Bitcoin mining revolution with free cloud mining and sustainable technology

June 3, 2025

The Riot platform appoints Jonathan Gibbs as the chief data center manager.

June 3, 2025

OTC encryption transaction | Careful gateway to direct digital asset exchange

June 3, 2025

Monarq Asset Management announced a strategic investment in Falconx.

June 3, 2025

ASTAR’s ACS campaign is finished with significant ecosystems.

June 3, 2025

Currently Altcoin Bear Cycle is the longest -what is the next?

June 3, 2025

AI influence exploration: The necessity of human verification in the digital world

June 3, 2025

Bitcoin vs Altcoins-Check for the new ALT season.

June 2, 2025

NVIDIA improves everything by acceleration of RTX AI PC.

June 2, 2025

SPX, DXY, BTC, ETH, XRP, BNB, SOL, Doge, ADA, Hype

June 2, 2025

Electrum testnet wallets do not display the trading record for the address.

June 2, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Bitcoin mining revolution with free cloud mining and sustainable technology

June 3, 2025

The Riot platform appoints Jonathan Gibbs as the chief data center manager.

June 3, 2025

OTC encryption transaction | Careful gateway to direct digital asset exchange

June 3, 2025
Most Popular

Binance Supports BNB Beacon Chain and BNB Smart Chain Network Upgrade and Hard Fork

April 4, 2024

Assessing BGB price stability, SEI surge and BDAG’s investment advantage

April 5, 2024

As the SEC delays its ETH ETF decision until March, Fidelity is waiting.

January 21, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.