Crypto sentiment returned to “Greed” on Saturday because the crypto market surged, following dovish feedback from US Federal Reserve Chair Jerome Powell that raised hypothesis of a doable price lower in September.
The Crypto Concern & Greed Index, which measures general crypto market sentiment, rose to a “Greed” rating of 60 on Saturday, up 10 factors from Friday’s “Impartial” studying of fifty, after briefly dipping into Concern earlier within the week.
The rebound got here after Powell’s speech on the annual Jackson Gap financial symposium on Friday, the place he mentioned that the present circumstances in inflation and the labor market “could warrant adjusting” the Fed’s monetary policy stance.
ETH is the “most rate-sensitive facet of crypto”
After Powell’s speech, Bitcoin (BTC) surged 5% to $117,300, liquidating $379.88 million in shorts. In the meantime, Ether (ETH) reclaimed its 2021 all-time highs of $4,878, reaching as excessive as $4,851, representing an 11.51% enhance over the 24 hours, according to CoinMarketCap.
In an X put up on the identical day, Axie Infinity co-founder Jeffrey “Jiho” Zirlin called Ether the “most rate-sensitive facet of crypto.”
“As rates of interest drop, the unfold between what will be earned by depositing your stablecoins in DeFi vs. depositing your USD in a financial institution widens,” he mentioned.
In keeping with the CME FedWatch Tool, 75% of market members anticipate a price lower on the Sept. 17 Fed assembly. Buying and selling useful resource The Kobeissi Letter said, “It seems Fed Chair Powell is setting the stage for a September price lower.”
Traditionally, Fed rate cuts increase liquidity and make riskier belongings like crypto extra engaging.
Crypto market members had been anticipating the surge
Nevertheless, St. Louis Fed President Alberto Musalem told Reuters on Friday that he nonetheless wants extra time to determine whether or not he’ll assist an rate of interest lower.
“I might be updating my outlook and stability of dangers all the best way up and till two days, three days earlier than the assembly,” he mentioned.
Earlier the week, several crypto market participants anticipated a crypto market spike if Powell hinted at a price lower.
Associated: Bitcoin price breakout to $117K liquidates bears, opening door to fresh all-time highs
Writer Jason Williams said on Wednesday, if Powell “is available in mushy and leans that price cuts are seemingly, we turbo rip.”
Crypto Banter dealer Ran Neuner said “Jackson Gap will form crypto’s course shifting ahead,” earlier than including, “Trump is pushing for a price lower with good cause, however will Powell hear?”
Journal: Everybody hates GPT-5, AI shows social media can’t be fixed: AI Eye
