New data revealed that applications for unemployment benefits dropped more than anticipated last week. However, this led markets to reduce the likelihood of an outsized half-point rate cut by the Federal Reserve in September, adjusting the chance from 69% to 54%.
Several Federal Reserve officials expressed growing confidence that inflation is cooling enough to permit future interest rate cuts, although recent market turbulence was not a factor in this view.
Crypto Tracker
At 1:01 pm IST, Bitcoin was trading 6.4% higher at $60,908, while Ethereum had risen 10.3% to $2,689. The broader crypto market also experienced gains, with BNB up 4.7%, Solana rising 2%, Dogecoin increasing by 5%, Avalanche by 5%, NEAR Protocol by 9%, and Shiba Inu by 5%.“The upward movement in cryptocurrencies aligns with the bullish trend in the US market,” said the CoinDCX Research Team.Meanwhile, Edul Patel, CEO of Mudrex, commented, “Bitcoin has reclaimed the $61,000 level, driven by whale accumulation following an earlier downward trend. This suggests strong bullish sentiment, with traders now targeting $62,700. The next significant resistance is at $65,000, while support levels are at $60,000 and $57,700.”Additional factors contributing to the positive market sentiment, according to Bitget Research, include:
- According to TASS, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in Russia. The law introduces new concepts, including digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals organizing mining pool activities.
- Morgan Stanley, the largest wealth management firm in the U.S., authorized its 15,000 financial advisors to recommend Bitcoin exchange-traded funds (ETFs) starting August 7th, according to Cointelegraph.
Ryan Lee, Chief Analyst at Bitget Research, noted that while Bitcoin’s rise above $62,000 is significant, it does not necessarily indicate a full market recovery. The recent positive news developments have influenced market trends.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
