Interest rates in the United States are finally starting to fall. Federal Reserve Chairman Jerome Powell announced on Wednesday that the central bank would cut interest rates by 0.5%, bringing them to a range of 4.75%-5%.
Bitcoin followed suit, rising 0.5% to $60,500, while other major crypto assets such as Ethereum and Solana remained stable.Higher interest rates typically increase borrowing costs and lure investors toward risk-free government bonds.
But when interest rates fall, borrowing becomes easier, economic activity accelerates, and investors are more inclined to buy risky assets such as stocks and cryptocurrencies. The Federal Reserve began raising interest rates in March 2022 to respond to soaring inflation. From 0% at the time, it increased all the way to 5.25%-5.50% in July 2023, which is one of the fastest and largest interest rate hike cycles in U.S. history.
Market forecasts for this rate cut are not consistent. According to FedWatch data, 61% of the market expects a 0.5% rate cut, while 39% expect a 0.25% rate cut. Investment banks also have split views, with Goldman Sachs and Morgan Stanley predicting 0.25% and JPMorgan Chase predicting 0.50%. Although a larger rate cut is usually good news for investors because liquidity is released more quickly, it is also accompanied by concerns about a recession.
Jorge Lagarias, chief economist at Forvis Mazars, said cutting rates too quickly could convey a sense of urgency and have negative consequences.
However, Quinn Thompson, founder of Lekker Capital, believes that market concerns about a recession are exaggerated. He pointed out that investors should not blindly rely on historical precedents and believe that every 50 basis point rate cut will lead to a market crash.
The strong will always be strong. Several altcoins (FET, ZRO, SUI) that have been performing strongly recently have continued to increase their gains today! Most altcoins have just recovered the losses from yesterday’s decline! The overall trend is still weak, and the pressure from the top of the upper box is obvious!
DOGS Takes Market by Storm, Becoming the Third Most Held Cryptocurrency
Since the airdrop, Dogecoin (DOGS) has quickly risen in the cryptocurrency market, becoming the third most held cryptocurrency after Ethereum and USDT. DOGS has a market cap of $523 million and has over 4.5 million wallet users on the TON blockchain.
With a large user base and unique market position, DOGS still has the potential to expand despite slight price fluctuations. It has demonstrated unprecedented participation in the Web3 space, with 53 million people interacting with its mini-program. Strong user appeal and market hype indicate that DOGS is expected to grow further in the next bull market cycle, bringing substantial returns to early investors.
FTM's growth is amazing and may break new highs
Similar to Aave, FTM has performed strongly recently, becoming one of the major altcoins with significant gains. FTM prices have increased nearly 50% in the past 30 days, which may have something to do with its upcoming Sonic upgrade. At press time, FTM was quoted at $0.65.
Looking at the daily chart, the money flow (CMF) indicator shows that the token may have further room to rise. The CMF indicator is used to measure buying and selling pressure, and when the reading rises, it means that buying pressure exceeds selling volume. Currently, FTM's CMF index has increased, indicating that bulls are still dominant. If this trend continues, FTM is expected to break through the $0.59 resistance level and the target may rise to $0.80.
ETHFI price may rebound, DeFi sector performs strongly
In the field of decentralized finance (DeFi), especially in the Ethereum staking and liquidity re-staking market, ether.fi plays an important role. As a leading non-custodial staking solution, ether.fi allows users to have full control over their assets while earning returns through staking.
Over the past month, ether.fi's weETH/eETH (the leading LRT) has seen a net inflow of $252 million in lending protocols. At the same time, users have injected $52 million into bridge protocols and $39 million into EOAs and Safes. ETHFI may see a rebound, with prices expected to break through the $1.67 resistance level, with further upside potential of 3 to 6 times.
Let’s take a look at these two MEMEs. Recently, there are also fans who like Wen Xiaomiao. Is it worth investing in?
MYRO：
Advantages: Low market capitalization (77M), already listed on Binance Futures, good trend, in the bottoming and accumulation stage.
Disadvantages: The adjustment period has lasted for 6 months, but it is still relatively short compared to the long-term market situation.
RATS：
Advantages: As one of the leaders in the BTC inscription field, it has a low market value, has been launched on Binance contracts, is expected to be launched on the spot market in the future, and has sufficient adjustment time.
Disadvantages: It has not yet been listed on a super large exchange, which affects its potential liquidity and popularity.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
