The U.S. Federal Reserve announced that it would keep its benchmark interest rate unchanged at a range of 5.25% to 5.5%. However, Chairman Powell released dovish remarks about a possible interest rate cut in September at the press conference after the meeting. U.S. stocks rose across the board, with the S&P 500 rising 1.58% and Nasdaq It rose 2.64%, led by Huida, TSMC and other technology stocks. However, Bitcoin once again went its own way, falling from above 66K after the press conference. It was trading at $64,783 at the time of writing, a 24-hour drop of nearly 2%.
Powell: May cut interest rates in September
The Federal Reserve kept interest rates on hold at the end of its policy meeting on Wednesday and noted "some further progress" on lowering inflation to the central bank's 2% target.
Federal Reserve Chairman Powell said at a press conference after the meeting that although the meeting has not made any decisions on future actions, if economic data shows that inflation is slowing, an interest rate cut may be implemented as soon as September.
If this test is passed, our policy rate could be lowered as soon as our next meeting in September.
CME Group's FedWatch shows traders expect a one-cent rate cut at each of the three interest rate meetings before the end of the year.
US stocks rise across the board, Bitcoin drops to 64K
U.S. stocks rose across the board on Powell's dovish remarks about possible interest rate cuts, with the S&P 500 rising 1.58% and Nasdaq rising 2.64%, led by technology stocks such as Huida and TSMC.
However, Bitcoin did not rise sharply along with the US stock market. Instead, it fell from above 66K after the press conference. It was reported at US$64,783 at the time of writing, a drop of nearly 2% in 24 hours.
Yesterday, the mini version of Grayscale Bitcoin Fund BTC after the split of Grayscale GBTC was officially launched, and the market has not seen any outflow of GBTC.
(Grayscale GBTC fell more than 11%! Caused by splitting into mini trust BTC)
On 7/30, the actual opening time of the nine-tier Ethereum spot ETF came to the sixth day. The daily inflow finally turned from negative to positive for the first time, achieving the first net inflow, with a total amount of US$33.7 million. The reason is believed to be the slowdown in the huge outflow of Grayscale ETHE. Meanwhile, BlackRock’s investment chief noted that some investment banks are looking into adding Ethereum ETFs to their portfolios.
(Ethereum spot ETF has net inflows on the first day! Grayscale ETHE selling pressure has slowed down and is expected to be included in institutional investment portfolios)
The trend of ETH is similar to that of BTC. After the press conference, it fell from above 3,300 to US$3,232 at the time of writing.
This article Powell relented on cutting interest rates in September, US stocks surged, and Bitcoin fell to 64K. First appeared on Chain News ABMedia.
