Expectation of Interest Rate Cut in June Boosts U.S. Stocks, Gold, and Cryptocurrencies to Continue Rising
Federal Reserve Chairman Powell expressed his position last night that there is still a possibility of interest rate cuts this year. The US stock market closed higher and gold reached a new historical high. Bitcoin broke through the previous historical high of $69,000 the night before, although it briefly dropped to $59,000, it slowly stabilized yesterday and remained at a high level of around $66,000. Ethereum’s performance was more eye-catching yesterday, reaching a high of $3,906, the highest since January 2022.
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Powell Says Interest Rate Cuts Possible in 2024
Bitcoin and Gold Reach New Highs
Performance of Top 10 Cryptocurrencies by Market Cap
Federal Reserve Chairman Powell stated during his congressional testimony on Wednesday that there may be interest rate cuts “at some point” in 2024, but the central bank will proceed cautiously when evaluating whether inflation needs to be cooled down.
The previous inflation data dampened investors’ optimistic expectations of a rapid interest rate cut. However, Powell’s remarks seemed to provide the market with reassurance that interest rate cuts are already certain, only a matter of time.
According to CME FedWatch data, the market’s expectation for a rate cut has been pushed back to June. The next Federal Reserve meeting will announce its interest rate decision on March 20, and the market will adjust its expectations for future interest rate trends based on the statement and dot plot.
Bitcoin broke through the previous historical high of $69,000 the night before, although it briefly dropped to $59,000, it slowly stabilized yesterday and remained at a high level of around $66,000.
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Bitcoin Breaks New Historical High! Soared and Then Plummeted, Wiping Out Nearly $1.2 Billion
)
Benefiting from continuous inflows of funds into Bitcoin spot ETFs, the price of Bitcoin has been soaring astonishingly in recent times. BlackRock’s IBIT saw an inflow of $788 million on March 5, the highest daily inflow record to date. Despite Grayscale’s GBTC outflow of $332 million, the overall ETF inflow amounted to $648 million.
In addition, gold has also been reaching new highs recently due to market speculation of a June interest rate cut by the Federal Reserve and increased safe-haven demand triggered by the Middle East conflict.
Ethereum performed impressively yesterday, reaching a high of $3,906, the highest since January 2022.
BNB also rose by 8.2% yesterday, and Binance will launch a new round of Launchpool – Aevo (AEVO) on March 8, which focuses on Ethereum roll-ups based on the OP Stack and is a decentralized derivative trading platform. Binance has been frequently launching Launchpool projects recently, using BNB and FDUSD as collateral to earn new tokens. This marketing strategy has consistently driven up the price of BNB.
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Further Reading
Gold Soars Alongside! Gold Breaks Historical High, Bitcoin Up Thousands of Points, Ethereum Revisits Pre-June Levels
Digital Gold Dominance Shifts! XRP Overtakes Bitcoin, Correlation with Gold Prices Surges
