EYES on FED RATE CUTS!! đ„đ„đ„
Bitcoin Pumps, Then Dumps Below $54K as Jobs Report Spurs Crypto Volatility!
The price swing liquidated nearly $50 million of leveraged derivatives positions across all cryptocurrencies in one hour, CoinGlass data shows.
The broad-market CoinDesk 20 index was down 3% over the past 24 hours, with BTC, ETH, XRP, ADA posting declines of as much as 4%.
Fed governor Waller said he will advocate for "front-loading rate cuts if that is appropriate."
A smaller, 25 basis-point cut would be more beneficial for asset prices, Fundstrat's Sean Farrell noted.
The brief rally in the cryptocurrency markets following Friday's U.S. jobs report quickly reversed in volatile trading, sending bitcoin (BTC), the largest cryptocurrency, to its lowest in a month.
The widely anticipated U.S. nonfarm payrolls report showed the world's largest economy added 142,000 jobs in August, slightly fewer than analyst forecasts, while the lower unemployment rate fell to 4.2% from July's 4.3%.
Later in the morning, Fed Governor Christopher Waller said in a speech at Notre Dame University that the "time has come" to lower interest rates and he will advocate for "front-loading rate cuts if that is appropriate." Some observers argued that a smaller cut would be more beneficial for risk assets, as a 50 bps cut might signal that the Fed is increasingly concerned about the U.S. economy falling into a recession.
"Ultimately, the nature of the cut (bullish or bearish) depends on economic data and Fed commentary, but all things being equal I still view 25 bps as better for asset prices than 50 bps," said Sean Farrell, digital asset research head at Fundstrat.
Is this the start of a pullback pump for the bulls?