After the Federal Reserve FOMC meeting announced at 2 a.m. on August 1 that it would maintain the base interest rate unchanged, it subsequently released dovish remarks that interest rates might be cut in September this year, and financial markets such as the U.S. stock market ushered in a wave of increases. However, the price of BTC initially rose to about 66,800 before falling back to 63,800. In the past 12 hours, the amount of long contracts liquidated was nearly $90 million, so this decline was mainly for the liquidation of long contracts.
Many people believe that there will be no interest rate cuts before the election, but I think the potential possibility of the Fed's interest rate cut in September has nothing to do with political factors. The Fed is unlikely to use these tools to oppose any party or election results, nor will it determine the policy of the Federal Open Market Committee (FOMC) based on the results of the U.S. election.
To be honest, with the continued improvement in inflation data and the cooling of the labor market, the Fed is paving the way for future interest rate cuts. Although risks still need to be carefully weighed, changes in the economic situation are pushing the Fed closer to the time to cut interest rates. The Fed is ready to meet future challenges to achieve its dual mission. Let's wait and see how these changes will affect the cryptocurrency world and our transactions.
