Cryptocurrency markets have rallied following the remarks made by US Federal Reserve (Fed) Chair Jerome Powell last week.
Stating that the time has come to adjust monetary policy, Powell delivered dovish messages, noting that the timing and pace of interest rate cuts will depend on incoming data. Powell also expressed that upside risks to inflation have diminished.
Powell's statements strengthened expectations for interest rate cuts. The money market is currently pricing in a total of 100 basis points in rate cuts by the end of the year.
In the markets, a 25-basis-point rate cut at the September 18 policy meeting is considered a certainty. There is a 38 percent probability assigned to a 50-basis-point cut.
BITCOIN RALLIES
Bitcoin tested above $65,000 today, reaching its highest level in approximately 3 weeks. Ethereum, meanwhile, surpassed $2,800.
Having recorded a rise of nearly 8 percent since Friday, Bitcoin is trading at $63,808 as of 9:50 AM. At the same time, Ethereum was trading at $2,735.
News Source: 12punto
