Key Points
- Federal Reserve Bank of Boston’s President Susan Collins suggests potential interest rate cuts.
- Cryptocurrencies like XRP, Solana, Bitcoin, and Ethereum could see significant gains.
Susan Collins, the President of the Federal Reserve Bank of Boston, has suggested that it may soon be time to ease interest rates.
This could lead to the Federal Reserve cutting rates by 18 September, potentially sparking a significant bull run in the markets.
Market Reactions and Predictions
Despite this, some are expressing concerns. Donald Trump, for example, has warned that the U.S might be on the brink of a severe recession, akin to the 1929 crash, and even suggested the possibility of a future world war.
In the cryptocurrency market, XRP and Solana have outperformed others over the past week, experiencing increases of 41% and 40%, respectively.
This surge follows XRP’s settlement with the SEC, which resulted in a $125M fine. This has boosted XRP’s price, with further gains expected.
Bitcoin and Ethereum also saw notable increases, rising by 23% and 22% from their weekly lows.
The potential interest rate cuts hinted at by the Federal Reserve could further boost these gains, making it easier for traders and investors to secure loans to buy these assets.
Bitcoin’s Performance and Future Prospects
Major financial firms like MicroStrategy and BlackRock have maintained their confidence in Bitcoin, holding onto their Bitcoin assets despite recent price drops.
Bitcoin itself has experienced an increase of over 20% in the past week from this week’s low.
With the potential rate cuts next month, Bitcoin’s value is expected to continue to rise as investors gain more access to capital.
Crypto funding rates for the top 30 coins have significantly shifted since the overheated markets of February and March. Currently, they are at their lowest levels of 2024.
These low rate periods can last for extended times, but the FED’s recent hints at possible rate cuts could soon change the market dynamics, potentially driving changes in these funding rates.
Finally, macro charts are showing positive signs again. For instance, the weekly candle returned to the low point of a 2.5-year cup & handle pattern.
With the FEDs hinting at rate cuts, an upward trend is inevitable. The market has been held back long enough, and this final upward move could soon happen, with the candle closing in two days.
