The encryption market was very excited about the possibility of reducing interest rates in the Federal Reserve of the United States in the remaining months of the year. This offer for emotions can be seen in the last gathering in the encryption market on the back of a positive speech by Jackson Hall by Federal Reserve Chairman Jerome Powell.
A different reaction was felt in the encrypted currency market after the issuance of unexpected salary statements (NFP) on Friday, September 5. However, it seems that the general consensus is that the latest version of weak function data may be somewhat positive in terms of interest rate discounts.
Weak work data increases price discounts: main banks
The American labor market data issued on Friday was weaker than expected, as only 22,000 jobs were added to the economy in August, where the 75,000 job expectations decreased. The major banking companies have now advanced how this new report affects the results of the FOOC Open Market Committee meetings (FOMC) in the coming months.
According to Bloomberg reportBank of America reduced their position on the lack of interest rates in 2025 as a result of the issuance of work data on Friday. Analysts now expect the Federal Reserve to reduce interest rates at least twice before the end of the year-discounts at 25 basis points (25 bits) in September and 2025.
Meanwhile, analysts at Goldman Sachs expect investors investment services, three discounts 25 bit per second before the year running out. The first interest rate is expected to occur in September, with two additional discounts in October and November.
In separate Reuters report from JuneCitigroup always expected three discounts in the remaining months of the remaining year. However, unlike Goldman Sachs, TITAN Banking cuts these interest rates until September, October and December.
How can the cuts in successive prices stimulate
Low interest rates were always seen as a positive indication of the total economy of risk assets, including the encryption market. Although fixed -income assets become less attractive, investors tend to get a risk position towards the most dangerous assets.
Consequently, periods of low interest rates or price discounts are often linked to an increase in the prices of encryption and continuous upward operation. Meanwhile, higher rates tend to decrease in encryption liquidity, as investors are less motivated to enter the market.
According to data from Coingecko, the total Crypto Marketing is about $ 3.09 trillion, which reflects a decrease of more than 1 % last day.
The total crypto market capitalization on the daily timeframe | Source: TOTAL chart on TradingView
Distinctive image from Istock, tradingvief chart
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