Market Anticipates FED Rate Cut as Crypto Declines Persist
As discussions about FED interest rates continue, a rate cut is looking increasingly likely for September.
Analysts are particularly focused on the magnitude of the potential reduction. According to QCP Capital, a crypto trading firm based in Singapore, Bitcoin and other cryptocurrencies are bracing for the FED’s decision, with a downward trend expected to persist.
QCP Capital’s daily market analysis indicates that the recent drop in cryptocurrency values could extend through September, influenced by recent market events. The firm pointed out that Nvidia’s latest earnings report led to a “sell the news” reaction in the crypto space, exacerbating declines.
READ MORE: Nasdaq Seeks SEC Approval for Bitcoin Index Options
The analysis also noted ongoing risk reversals in Bitcoin and Ethereum, reflecting continued market apprehension about further declines. Bitcoin has recently fallen to around $59,000, while Ethereum is sluggishly trading near $2,500.
With limited short-term positive momentum, QCP Capital predicts that declines will continue as the market adjusts to anticipated FED rate cuts and prepares for next week’s nonfarm payrolls data.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
