Bitcoin (BTC) is again above $61,000 after leaping 3.5% in the previous 24 hours, fueled by the discharge of bullish Fed minutes associated to the July assembly on Aug. 21.
Ethereum (ETH) adopted with 1.5% progress in the identical interval, whereas Solana (SOL) remained in the purple for the day — down 0.6% as of press time.
The minutes’ abstract doubles down on Fed Chairman Jerome Powell‘s recent remarks about a likely interest rate cut if market data continues to come in line with expectations. The document reads:
“The vast majority observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.”
Notably, the document also hints at a 25 basis points (bps) rate cut due to “recent progress on inflation” and “increases in the unemployment rate.” This would bring the interest rate benchmark to 5% from the current 5.25%.
The news is positive for crypto and other risk assets, as the reduction in bond yields makes them more attractive.
The equity market also reacted positively to the Fed minute, with the S&P 500, Nasdaq, and Dow Jones closing the day with positive movements of 0.42%, 0.57%, and 0.14%, respectively.
Interestingly, the odds of a 25 bps cut fell to 72% from 77% on Polymarket following the Fed minutes, while the odds of a 50 bps or more rose to 22% from 18%.
US elections could potentially hold prices down
Despite the potential bullish outcome in September, Bitfinex analysts believe the most significant narrative impacting crypto markets is the upcoming US presidential elections.
According to the analysts:
“As Democrat nominee Harris has seen an increase in odds of winning to almost equal Republican nominee, former President Trump’s odds, it induces uncertainty in markets, particularly crypto.”
After falling 10% beneath Vice President Kamala Harris’ odds of successful the election, former President Donald Trump’s odds recovered to 52% on Polymarket and at the moment are 5% forward of the Democrat candidate whose odds have fallen to 47%.
Nevertheless, regardless of the election consequence remaining unsure, Bitfinex analysts imagine that the market will get well if Trump’s odds have already bottomed.
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