In light of the upcoming interest rate cuts by the Federal Reserve (Fed), investor attention towards the crypto market is intensifying. Economist Stephen Moore, nominated by Donald Trump to the Fed, shared his insights on the matter.
Stephen Moore's Opinion
Stephen Moore, a senior economist, stated that the anticipated changes in Fed interest rates would not significantly impact the economy or assets like stocks and cryptocurrencies. He argues that the Federal Funds Rate has largely become irrelevant, as banks hardly utilize it anymore. Moore believes that the Fed should consider cutting the Interest on Reserves (IoR), which currently stands at 4.4%.
Crypto Market on Edge
As of now, Bitcoin is trading at $112,645, up 3.7% from its lowest point this month. Other major altcoins, such as Ethereum and Solana, remain relatively stable, while the total crypto market capitalization sits at $3.9 trillion. In a recent address at the Jackson Hole Symposium, Fed Chairman Jerome Powell hinted at rate cuts in the upcoming meeting, citing a weak labor market.
Upcoming ETF Approvals as the Main Catalyst
The main catalyst for the crypto market might be the upcoming ETF approvals by the U.S. Securities and Exchange Commission. After multiple delays regarding ETF applications, decisions are expected to be made in October, including on popular tokens like Solana and Ripple. Current data indicate a growing demand for altcoin ETFs.
Overall, Stephen Moore's perspective highlights the potential impact of the Fed's upcoming actions on the cryptocurrency market. While rate cuts may appear beneficial, the economic context requires deeper consideration.
