- Reputed voice explains the reason behind why the crypto market dipped today.
- It also explores when a recovery will occur for crypto prices.
- An inevitable rate cut is expected to bring explosive price pumps for all crypto assets.
Most financial markets took a heavy dip in prices. To highlight, the price of BTC and ETH fell from the $115,000 and $3,800 price ranges to the $113,000 and $3,400 price ranges, respectively. As analysts take a closer look at the sharp drop in prices for both the stock and crypto markets, one reputed source explores the many reasons behind why the crypto market dipped today and when a recovery will occur.
Reasons Behind Why the Crypto Market Dipped Today
The reputed source goes on to state that the reason behind the latest financial markets dumping and prized asset values falling has to do with what Trump expected of the Federal Reserve Board’s Chairman, Jerome Powell. Trump had said many times that he expected Powell to announce rate cuts, as he said it was the only way to save America from its debt crisis. Specifically, he wants Powell to cut rates by 3 points, but Powell has not yet complied, leaving all financial markets to face the repercussions.
A few other major factors also led to the fall in financial market values. As the detailed post above explains, the first factor is the July job report, revealing a major fall in the aspect compared to previous months. Meanwhile, Powell says he will cut rates only if inflation hits 2% sustainability or if the labor markets weakens significantly. The post states that with this dip, the market has repriced rate cut odds.
Currently, expectations for a rate cut in September have gone up from 40% to 80%. A rate cut would lead to an explosive price run for all financial markets, especially for the crypto market, due to its volatile nature. The post even goes on to laugh over Trump’s reaction to Powell’s refusal to cut rates before his criteria are met. After all, the longer Powell refuses to cut rates, the more likely he will have to do so due to market reactions.
When a Recovery Will Occur
The post went on to state that the financial markets are entering uncharted territory, a possible time when Fed independence may disappear. Presently, Powell seems to be stuck between weak economic data screaming for cuts, a president attacking the data and him personally, high market expectations for aggressive easing, and questions about statistical integrity.
Finally, the post concludes by saying that Trump fired the person who gave him the exact data he needed to pressure the Fed into rate cuts, while simultaneously attacking the Fed Chair, who he needs to implement those cuts. Ultimately, the markets are moving towards a space where rate cuts will become inevitable, and once announced, all financial markets, including the crypto market, will see more than just a recovery.
