A statement made by the Fed Chair Jerome Powell on Thursday has shaken up the crypto market. In his speech, Powell hinted at an interest rate cut in September. Whenever the Fed announces or hints at interest rate cuts, the crypto and stock markets always react positively because investors are always happy, as this will provide room for economic growth.
Whenever there is an interest rate cut, investors look for a safe haven as this always results in a weaker dollar, and crypto assets are one of the safe havens they use. No wonder the crypto market has responded sharply.
The crypto market has increased over 5% in the past 24 hours by rising above $2.22 trillion, and Bitcoin and other cryptos have followed suit.
Bitcoin hit a high of $64,853 yesterday before settling down around $64k at the time of writing this article. This is a 5% increase for Bitcoin in the past 24 hours and has also increased over 6% against the US Dollars over the past week.
Ethereum has also responded sharply by rising above $2,700, an increase of over 2.8% in the last 24 hours and over 6% increase in the past week.
Other coins are not left alone; among the top 10 cryptocurrencies, Dogecoin had the highest gainer with over 7% increase, and many tokens have also skyrocketed.
Just a day before this news, a popular crypto analyst, Quinten Francois, posted on X about the Bitcoin bull run cycle; he said that we still have two months away before the bull run will start, as historical charts show.
Reminder that the average cycle starts 170 days after the #Bitcoin halving
— Quinten | 048.eth (@QuintenFrancois) August 20, 2024
We’re currently at day 121 pic.twitter.com/4hDiLi4jF7
He highlighted that the average bull cycle starts after 170 days, and we are currently 121 days after the halving in April. Quinten believes that the crypto cycle for this year is about to start, and the US election will significantly influence the prices of Bitcoin and other cryptocurrencies.
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