- Impacts of the Fed Rate Expectations
- Potential Risks from Bank of Japan
- Key Takeaways
The US markets' closure has led to a significant decline in Bitcoin prices, continuing to impact the cryptocurrency market negatively.
Impacts of the Fed Rate Expectations
The sharp decline in Bitcoin's price is noteworthy, especially given the positive US data. The expectation for a Federal Reserve rate cut dropped drastically from 50 basis points to 25 basis points after market opening. Investors are recalibrating their projections downward despite employment data suggesting a higher likelihood of rate increases.
Potential Risks from Bank of Japan
The Federal Reserve has maintained peak rates for over a year, with the first rate cut in four years expected in 11 days. Historically, risk markets witness rapid losses during Fed rate cuts, although these are supportive factors for medium-term increases. However, the Bank of Japan’s potential further rate increases pose a significant risk to this scenario. If continued, this could lead to one of the worst days in risk markets in recent years.
Key Takeaways
BTC dropped to $52,650 at the time of writing. NASDAQ100 experienced its biggest weekly loss since November 2022. Ripple’s Founder Chris Larsen donated to Kamala Harris. Coinbase added ZK Coin to its listing roadmap. Fed and members indicated broad support for multiple rate cuts. SEC announced the cancellation of Salt Blockchain’s certification. The market indicators now give a higher probability to a 25bp cut following US data. Binance listed NEIROETH in futures trading. Fed members are ready to start the rate cut process. Non-Farm Payrolls announced 142K, expected 165K. Telegram CEO Pavel Durov mentioned a new investigation in Paris and promised to enhance security on the platform.
Analysts suggest that due to a lack of demand at resistance levels and repeated tests of supports, Bitcoin’s price could weaken further, potentially leading to new lows for altcoins in 2024.
