This week is critical for the US market, with the Federal Reserve expected to announce an important policy decision. On December 18, a 25 basis point (bps) rate cut is likely, marking the second reduction of 2024. This move could significantly impact the crypto market, so here’s what you need to know.
It was in September that the Federal Reserve introduced its first rate cut of 2024. Then, it reduced the interest rate target to a range of 4.75% to 5%. It was the weakened job market that primarily prompted the Fed Reserve to take a quick rate cut decision. In the sector week of October, the Initial Jobless Claims index dropped from 260 Thousand to 242 Thousand.
On December 18, the Federal Reserve is expected to announce another 25 bps rate cut. CME data shows a 93.4% probability of this happening, suggesting it’s highly likely.
Since the September rate cut, the crypto market has experienced impressive growth, up by 71.77%. The market cap of cryptocurrencies, excluding the top ten, has surged by 87.16%.
In October and November, the Bitcoin market showed +11.2% and +37.4% growth respectively. Though in October, the Ethereum market recorded a negative performance of -3.16%, the market registered a positive performance of 47.4% in November.
Experts believe that the upcoming rate cut will also impact the crypto market positively. In the last 24 hours, the entire market has witnessed a positive change. Bitcoin and Ethereum have grown by 2.3% and 1.9%, respectively, during the period.
On December 19, two key economic reports will be released: the final US GDP growth rate and the core PCE price index. In Q1, GDP growth was just 1.6%, but it increased to 3% in Q2. For Q3, the consensus forecast is a slowdown to around 2.8%, with TEForcast predicting similar figures.
In terms of inflation, the PCE price index stood at 3.7% in Q1 and dropped to 2.8% in Q2. The forecast for Q3 is a further decrease to 2.1%, in line with predictions from TEForcast.
This week is crucial for both the US economy and the crypto market. With the Federal Reserve’s rate decision and important economic indicators like GDP and PCE prices set to be released, these events could influence market movements.
Keep an eye out!
Ethereum, one of the most widely used blockchain platforms, has faced increasing scrutiny over its…
After Donald Trump returned to office with a pro-crypto stance, crypto deal-making has exploded in…
The Supreme Court recently dismissed a petition filed by WazirX users following the platform’s major…
Dankrad Feist, a researcher from Ethereum, has unveiled a four-year plan to increase the blockchain’s…
Nexo has officially reentered the U.S. market, offering high-yield crypto savings accounts, asset-backed credit lines,…
Governments around the world continue to play an important role in the crypto space. However,…
