Federal Reserve Chairman Powell expressed his stance on the possibility of interest rate cuts this year. The US stock market closed higher, and gold reached a new historical high. Bitcoin broke through the previous historical high of $69,000 the night before, although it temporarily dropped to $59,000, it slowly stabilized yesterday and remained at a high level of around $66,000. Yesterday, Ethereum performed well, reaching $3,906 at one point, setting a new high since January 2022.
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Powell: Interest Rate Cut Possible in 2024
Bitcoin and Gold Reach New Highs
Top 10 Cryptocurrencies by Market Value
Federal Reserve Chairman Powell stated during his congressional testimony on Wednesday that there may be a rate cut “at some point” in 2024, but the central bank will proceed cautiously when assessing whether inflation needs to be cooled down.
Previous inflation data dampened investors’ optimistic expectations of a rapid rate cut. However, Powell’s remarks seem to have provided the market with reassurance that a rate cut is inevitable, only a matter of time.
According to CME FedWatch data, the market’s expectation for a rate cut has been pushed back to June. The next Federal Reserve announcement on interest rates will be made on March 20th, and the market will adjust its expectations for future rate trends based on the statement and dot plot.
Bitcoin broke through the previous historical high of $69,000 the night before, although it temporarily dropped to $59,000, it slowly stabilized yesterday and remained at a high level of around $66,000.
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Bitcoin Breaks New Record High! Soars and then Plummets, Wiping Out Nearly $1.2 Billion
)
Benefiting from the continuous inflow of funds into Bitcoin spot ETFs, the price of Bitcoin has been soaring remarkably. BlackRock’s IBIT saw an inflow of $788 million on March 5th, setting a record for the highest daily inflow. Despite Grayscale’s GBTC outflow of $332 million, overall ETF inflows were $648 million.
In addition, gold has been reaching new highs recently due to increased bets on a rate cut by the Federal Reserve in June and escalating tensions in the Middle East, which have triggered safe-haven demand.
Yesterday, Ethereum performed well, reaching $3,906 at one point, setting a new high since January 2022.
BNB also rose by 8.2% yesterday. Binance will launch a new round of Launchpool, featuring Aevo (AEVO), which is a decentralized derivatives trading platform based on the OP Stack of Ethereum roll-ups. Binance has been frequently launching Launchpool projects, using BNB and FDUSD as collateral to earn new coins. Each launch has driven an increase in the price of BNB, making it a successful marketing strategy.
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