Fed Dey Hint Rate Cut, E Push Crypto Sentiment as BTC, ETH Rally
Federal Reserve Chair Jerome Powell talk wey soft for Jackson Hole symposium bring back crypto beta, cause Crypto Fear & Greed Index move from Neutral (50) go Greed (60) last Saturday. Dis kain good feeling for crypto con match when Bitcoin jump 5% to about $117,300, wey make $380 million short positions clear. Ether waka jump pass 11% to reach back im 2021 high for about $4,878. Axie Infinity co-founder Jeffrey Zirlin talk say Ether dey sensitive to rate changes because low interest rates dey push DeFi returns pass bank deposits. CME FedWatch Tool talk say get 75% chance of rate cut for September. E get some Fed people like St. Louis Fed President Alberto Musalem wey still dey careful, but traders don dey expect market to rally if Powell go soft. The reaction show how people expectation for rate cuts fit increase liquidity and risk appetite for crypto market.
Bullish
Powell wey talk soft for Jackson Hole jom start change how market dey feel, e carry Crypto Fear & Greed Index go 'Greed' level. If you check fu still, anytime Fed cut rate or hint say dem go cut, e mean say money go plenty and cost to borrow go reduce, dis one dey make risk assets sweet pass. Bitcoin jump 5% plus Ether rally 11% show say short-squeeze and new risk taker mindset dey inside. Market chance say dem go cut rate come September don reach 75%, e dey boost bullish vibe. Similar big jumps happen afta Fed switch up for 2020 and 2023 wey ginger crypto rally. For short time, traders fit dey chase more gains, but long term stability need to check inflation data plus wetin Fed really go do. If dovish signals continue, e fit keep the uptrend, but any hawkish surprise fit make traders collect profit quick.