BTC It exceeded $ 115,700 at a speed and Eth He jumped for $ 4,600. Moreover, this quick decline in ETH price has created a great look in the ETHBTC parity. Powell did not speak in the tone he was feared in today’s statements. He did not take abnormal PPI data very seriously and focused more than expected to cool in employment. Moreover, there are more details and Crypto Coins rising.
Why did crypto currencies rose today?
Powell’s statements remained very soft after yesterday’s harsh rhetoric and said things that feed the risk appetite of investors between the lines. The most important sentences were the following.
“In the near term, the risks of inflation are upward, and the risks of employment are downward; this is a challenging situation. When our goals are contradictory, the framework requires us to balance both aspects of our dual duty. Since it enables us to progress, the changes in the basic appearance and risk balance may require the arrangement of our policy stance.
So here he says that excessive end signals come in employment, and since the policy is restrictive, we have an area to take it seriously and move. It is possible to read this as iz We reduce interest rates in September ”. Indeed, the markets are 2 this year interest rate reduction In September, the possibility of a discount in September was carried to 90 percent+.
Powell’s explanations
Powell, who started his speech by mentioning the ability of the US economy to show durability despite the radical changes, gave a sub -message that the tariffs will not be destructive. At the beginning of his speech, he talked about the change in the risk balance and the message that the priority monetary policy is now ready to take employment seriously.
“FedIn terms of bilateral task objectives, the labor market is close to the maximum employment level, and inflation is still slightly higher, but has declined significantly from the peak levels after pandemia. At the same time, the balance of risk seems to change. ” – Powell
Speaking that negativity in employment data is related to the sharp decrease in migration, Powell talked about the increasing risks in employment and the potential of rapid unemployment rates. As a matter of fact, this detail is supportive for interest rate cuts.
“The effects of customs tariffs on consumer prices are now clearly visible. We expect these effects to accumulate in the coming months, but there is a major uncertainty about the timing and quantity. The question that is important in terms of monetary policy is whether these price increases will increase the ongoing inflation problem significantly. A reasonable basic scenario will be a relatively short -term. It does not come to change the customs duties of customs and distribution networks.
What he emphasizes here can be interpreted that they can follow the effect of tariffs on inflation as much as they can tolerate.
In summary all these details Crypto Coins For inflation -related policy tightening will lead to weakening the risk of tightening. Especially with the demands of a powerful treasury company of tens of billions of dollars, ETH can decompose and run to new records in the coming days. Powell We can breathe a comfortable breath because he gave a clear message that he will not insist on inflation and that he will not fight with Trump.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
