- Fed’s Bostic hints at a potential 50 bps rate cut, conditional on improved US job data.
- Recent Fed rate cut of 0.5% followed by speculation of further cuts based on upcoming job data.
- Analyst suggests Bitcoin could rise to $70K as lower rates devalue the dollar and boost crypto demand.
Federal Reserve officials are closely monitoring US job data, with Raphael Bostic, the President of the Federal Reserve Bank of Atlanta, indicating that another rate cut could be on the horizon.
In an interview with Reuters, Bostic mentioned that a stronger-than-expected job market could prompt him to support a significant 50 basis point rate cut at the Federal Open Market Committee’s (FOMC) November meeting.
He pointed out that the job data is crucial and claimed that a poor reading would urge him to support more decisive policies.
On September 18, the head of the Federal Reserve announced a 0.5% rate cut. Powell made it clear that all future decisions would rely on economic information such as inflation and job statistics.
Fed officials, including Bostic, emphasize that inflation needs to be controlled, with the long-term goal of maintaining a 2% annualized inflation rate. Despite signs of economic normalization, Bostic believes the Fed must keep a restrictive stance until there is clear evidence of declining inflation
Investors have reacted with concern in the cryptocurrency industry due to these changes. Bitcoin’s value stands at $63.112.16, dropping by 4.08% over the past day. The prices of Ethereum and other leading cryptocurrencies like Binance Coin XRP and Solana have dropped, reflecting a larger market trend.
Economic analysts express confidence in the possible effects of additional rate decreases on the cryptocurrency realm. 10X Research analyst Markus Thielen believes Bitcoin might quickly return to the $70K level.
Investors could redirect their attention to cryptocurrencies like Bitcoin due to the expected weakening of the US dollar from more rate decreases.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
