- Boston FED President Susan Collins hinted at rate cuts
- Analysts are still hopeful that cryptos will continue to rise
Susan Collins, president of the Federal Reserve Bank of Boston, recently indicated that it may soon be appropriate to start easing interest rates. What this means is that the Federal Reserve could cut rates as early as September 18, potentially triggering a significant bull run in the markets.
However, alarm bells are ringing in some circles. Donald Trump, for example, has expressed some concerns and warned that the US may be heading for a severe recession, one similar to the 1929 crisis, while also predicting the possibility of an imminent world war.
XRP & SOL clear winners while BTC & ETH follow
XRP and Solana were standout performers this past week, rising 41% and 40% respectively. This push follows XRP’s settlement with the SEC, which involved a $125 million fine. As expected, this has driven the price of XRP higher, with expectations of further gains on the charts.
Bitcoin and Ethereum also saw notable gains, up 23% and 22% from their weekly lows.
The Federal Reserve’s hint at potential rate cuts could further boost these gains as it could make it easier for traders and investors to obtain loans to buy these assets.
Source: TradingView
Bitcoin is up 23% this week
Major financial companies remain confident in Bitcoin, as neither MicroStrategy nor BlackRock have sold their Bitcoin holdings despite the crypto’s recent bouts of price decline. For his part, Bitcoin alone has risen more than 20% in the past week from this week’s low.
With the Federal Reserve hinting at possible rate cuts next month, Bitcoin’s value is expected to continue to rise as investors gain more access to capital.
Source: TradingView
Crypto financing rates for the top 30 coins
Cryptocurrency funding rates have changed significantly since the overheated markets of February and March. Currently they are even at the lowest level of 2024.
Such periods of low interest rates may last for an extended period of time, but the Fed’s recent hints about possible rate cuts could soon change market dynamics, potentially leading to changes in these financing rates.
Source: Coinglass
Altcoins excluding BTC form a cup & handle pattern
Finally, the macro charts again show some positive signals. For example, the weekly candle returned to the low of a 2.5-year cup & handle pattern.
So, after the Feds hinted at interest rate cuts, an upward trend is inevitable. The market has been stalled long enough and this final upward move could happen quickly, with the candle closing in two days.
Source: TradingView