The plan to reduce the United States (US) Central Bank’s (The Fed) benchmark interest rate, the Fed Funds Rate (FFR), could be a catalyst for the altcoin market to recover and grow.
“The Fed’s plan to lower interest rates starting in September could be a catalyst for the altcoin market to recover and grow,” said Indodax CEO Oscar Darmawan in Jakarta, Monday (9/9). Oscar highlighted the Fed’s important role in determining the direction of the crypto market, including altcoins.
The altcoin market, including ethereum (ETH), has been on a tear in recent days. ETH briefly touched $2,790 on August 26, 2024, before dropping to $2,301 on September 9, 2024. The drop put Ethereum at its lowest point against Bitcoin in nearly three years. However, there are indications that the decline may be temporary.
Oscar assessed that the current condition is inseparable from the cycle in the crypto market which is influenced by various global factors such as monetary policy and technology adoption trends. Altcoin price fluctuations often follow seasonal patterns and global liquidity movements, especially from large countries such as the United States and China.
The altcoin market is not only influenced by technological developments and investor sentiment, but also by global liquidity flows. According to a report from Cointelegraph.com, one of the factors influencing the altcoin market is the liquidity injection from China which tends to increase at the end of the year and peaks in February.
If global liquidity increases, especially with quantitative easing (QE) policies in China and the United States, we could see a significant increase in the altcoin market. Quantitative easing is an unconventional monetary policy carried out by central banks by increasing the amount of money circulating in the market.
The method is, the central bank buys financial assets from banks or financial institutions and long-term government securities. The goal is, the public can more easily get loans or credit. This policy is usually carried out when the usual ways of managing the economy are no longer effective.
On the other hand, Oscar emphasized the importance of diversification in crypto investment and encouraged users to not only focus on bitcoin, but also explore the potential of various altcoins. Thus, users can maximize investment opportunities amidst the ever-changing market dynamics. (Ant/Z-2)
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Fed crypto news today
Table of Contents
Fed Rate Cut: A Catalyst for Altcoin Market Recovery and Growth?
The cryptocurrency market has been experiencing a tumultuous ride in recent days, with the altcoin market, including Ethereum (ETH), experiencing significant fluctuations. However, experts believe that the plan to reduce the United States Central Bank’s benchmark interest rate, the Fed Funds Rate (FFR), could be a catalyst for the altcoin market to recover and grow [[1]].
Indodax CEO Oscar Darmawan recently stated that the Fed’s plan to lower interest rates starting in September could be a game-changer for the altcoin market. He highlighted the Fed’s crucial role in determining the direction of the crypto market, including altcoins. The altcoin market has been on a tear in recent days, with ETH briefly touching $2,790 on August 26, 2024, before dropping to $2,301 on September 9, 2024 [[1]].
The decline in the altcoin market is not unprecedented, and experts believe that it may be temporary. The current condition is inseparable from the cycle in the crypto market, which is influenced by various global factors such as monetary policy and technology adoption trends. Altcoin price fluctuations often follow seasonal patterns and global liquidity movements, especially from large countries such as the United States and China [[1]].
One of the key factors influencing the altcoin market is the liquidity injection from China, which tends to increase at the end of the year and peaks in February [[1]]. If global liquidity increases, especially with quantitative easing (QE) policies in China and the United States, we could see a significant increase in the altcoin market. Quantitative easing is an unconventional monetary policy carried out by central banks by increasing the amount of money circulating in the market.
The cryptocurrency market is closely tied to global economic trends and interest rates. A decrease in interest rates can lead to increased liquidity in the market, which can boost the demand for altcoins and drive up their prices. As the global cryptocurrency market cap is currently standing at $2.05 trillion, with a -0.22% change in the last 24 hours [[3]], any significant increase in global liquidity could have a profound impact on the altcoin market.
However, it’s essential to note that the cryptocurrency market is also vulnerable to scams and fraud. The Department of Financial Protection and Innovation (DFPI) has received numerous complaints about cryptocurrency scams, and it’s crucial for investors to be cautious and do their due diligence before investing in any cryptocurrency or altcoin [[2]].
the plan to reduce the Fed Funds Rate could be a catalyst for the altcoin market to recover and grow. However, investors must be aware of the various factors that influence the cryptocurrency market, including global monetary policy, technology adoption trends, and liquidity flows. Additionally, it’s crucial to be cautious of scams and fraud in the cryptocurrency market and to do thorough research before investing.
References:
Fed crypto news today
Fed Rate Cut: A Catalyst for Altcoin Market Recovery and Growth?
The cryptocurrency market has been experiencing a tumultuous ride in recent days, with the altcoin market, including Ethereum (ETH), experiencing significant fluctuations. However, experts believe that the plan to reduce the United States Central Bank’s benchmark interest rate, the Fed Funds Rate (FFR), could be a catalyst for the altcoin market to recover and grow [[1]].
Indodax CEO Oscar Darmawan recently stated that the Fed’s plan to lower interest rates starting in September could be a game-changer for the altcoin market. He highlighted the Fed’s crucial role in determining the direction of the crypto market, including altcoins. The altcoin market has been on a tear in recent days, with ETH briefly touching $2,790 on August 26, 2024, before dropping to $2,301 on September 9, 2024 [[1]].
The decline in the altcoin market is not unprecedented, and experts believe that it may be temporary. The current condition is inseparable from the cycle in the crypto market, which is influenced by various global factors such as monetary policy and technology adoption trends. Altcoin price fluctuations often follow seasonal patterns and global liquidity movements, especially from large countries such as the United States and China [[1]].
One of the key factors influencing the altcoin market is the liquidity injection from China, which tends to increase at the end of the year and peaks in February [[1]]. If global liquidity increases, especially with quantitative easing (QE) policies in China and the United States, we could see a significant increase in the altcoin market. Quantitative easing is an unconventional monetary policy carried out by central banks by increasing the amount of money circulating in the market.
The cryptocurrency market is closely tied to global economic trends and interest rates. A decrease in interest rates can lead to increased liquidity in the market, which can boost demand for altcoins and drive up their prices. As the global cryptocurrency market cap is currently standing at $2.05 trillion, with a -0.22% change in the last 24 hours [[3]], any significant increase in