Powell promised to cut interest rates in September, Bitcoin fell instead of rising

2024-08-01 11:52

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U.S. stocks rose across the board due to Powell's dovish remarks on possible interest rate cuts, but Bitcoin continued to fall after the press conference.

Original title: "Powell accompanies rate cut in September, US stocks surge, Bitcoin falls to 64K"

Original author: Florence, Chain News

The US Federal Reserve announced that it would maintain the benchmark interest rate at 5.25% to 5.5%, but Chairman Powell released dovish remarks about a possible rate cut in September at the press conference after the meeting. US stocks surged across the board, with the S&P 500 up 1.58% and Nasdaq up 2.64% led by tech stocks such as Nvidia and TSMC. However, Bitcoin once again went its own way, falling from above 66K after the press conference to $64,783 before press time, a 24-hour drop of nearly 2%.

Powell: Rate Cut Possible in September

The Federal Reserve kept interest rates unchanged at the end of its policy meeting on Wednesday, noting that "some further progress" had been made in bringing inflation down to the central bank's 2% target.

Fed Chairman Powell said at a press conference after the meeting that while the meeting had not yet made any decisions on future actions, a rate cut could be implemented as early as September if economic data showed slowing inflation.

"If this test is passed, our policy rate could be lowered as soon as our next meeting in September."

CME's FedWatch shows that traders expect three rate meetings before the end of the year to have a one-point rate cut each.

US stocks rose across the board, Bitcoin fell to 64K

Affected by Powell's dovish remarks on possible rate cuts, US stocks rose across the board, with the S&P 500 up 1.58%, and Nasdaq up 2.64% led by technology stocks such as Nvidia and TSMC.

However, Bitcoin did not rise with the US stock market. Instead, it fell from above 66K after the press conference, and was reported at 64,783 US dollars before the deadline, a 24-hour drop of nearly 2%.

Yesterday, the mini version of the Grayscale Bitcoin Fund BTC, which was split from Grayscale GBTC, was officially listed, and the market did not see the outflow of GBTC.

7/30 The actual opening time of the nine Ethereum spot ETFs came to the sixth day, and the daily inflow finally turned from negative to positive for the first time, achieving the first net inflow, with a total amount of US$33.7 million. The reason is believed to be the slowdown of the huge outflow of Grayscale ETHE. At the same time, the investment director of BlackRock pointed out that some investment banks are studying the inclusion of Ethereum ETFs in their investment portfolios.

ETH's trend is similar to BTC. After the press conference, it fell from above 3,300 and was reported at 3,232 US dollars before press time.