- Fed’s Powell confirms September rate cut, spurring bullish sentiment.
- Altcoins reacting first with a surge that outperformed BTC.
- ETH price was finally able to break past $4,870 while BNB set a new ATH.
The Federal Reserve Board’s Chairman Powell confirms September rate cut, allowing ETH price to hit bull target of $4,870. For months now, the price of Ethereum has been struggling to break past the $4,800 price range, until Powell’s bullish speech led to a sudden surge in crypto prices, taking ETH to nearly enter price discovery and allowing altcoin Binance Coin (BNB) to hit a new ATH just short of $900.
Powell Confirms September Rate Cut
A highly anticipated event this bull cycle was rate cut announcements for the Federal Reserve Board. Before Trump took office, the Fed had already announced a rate cut last year. As soon as Trump took office following his Presidency win, Trump began to take serious measures to reduce costs for the country whilst also pumping pro-crypto legislation with his pro-crypto team.
These cost cutting ventures led to a rift between him and Elon Musk, the tech titan who helped Trump with his Presidency campaigning and to help the President find an efficient process in cutting costs. However, Trump’s pro-crypto actions have been working very well for the nation, allowing crypto companies to thrive in the USA. Trump began by firing Gary Gensler and has been pressuring Powell to announce rate cuts over the last few months.
In detail, Trump expected Powell to announce a 3 point rate cut, as each point would save America $360 billion from its ever-increasing debt. While Powell refused to cut rates over the past free months, Trump grew outraged and titled Powell, ‘Too Late’ Powell, as Trump believes, Powell’s late rate cut announcement would continue to cost the nation heavily. As for why rate cuts were delayed, Powell was waiting on certain criteria to be met.
Powell’s Bullish Speech Ignites Strong Crypto Sentiment
With the latest unemployment details out, Powell heavily hinted in hints at rate cuts coming in September. This was an outcome that most crypto analysts expected. As we can see from the post below, this reputed crypto figure breaks down how Powell’s short speech has made a huge impact on the crypto and stock markets, starting with how BTC price bounced back to $117,000, while ETH price broke past $4,800.
Meanwhile, several altcoin prices rallied as well. The speech also kills the idea of a rapid and aggressive rate cuts, meaning he market may fall before a massive surge can occur. The analyst also states that rate cuts will happen less often going forward, and that this news is highly bullish for altcoins in particular. For the weeks ahead, the analyst advices watching large-cap altcoins like ETH, SOL, XRP, ADA, BNB, and DOGE.