EddieJayonCrypto
10 Jun 24
JPMorgan and Citi have changed their stance on a potential interest rate cut by the Federal Reserve in July, extending the timeline for the cut due to evolving macroeconomic factors. JPMorgan reversed its anticipated rate cut after a better-than-expected U.S. jobs report, leading to a decrease in in...
JPMorgan and Citi have revised their stance on the potential interest rate cut by the Federal Reserve in July, extending the timeline for the cut due to evolving macroeconomic factors. This shift comes after JPMorgan reversed its anticipated rate cut following a better-than-expected U.S. jobs report. The positive job growth and rising unemployment rates have led to a decrease in institutional sentiment towards a July rate cut, with most economists now predicting the first cuts to come in September and December. This change has impacted the crypto market, with assets experiencing reduced numbers and skepticism ahead of the upcoming Fed meeting. Despite the projected shift in rate cuts leading to a fall in crypto prices and wider liquidations, the market has shown a slight rebound in the last 24 hours.
Additionally, the U.S. Jobs Report saw a 272,000 job increase last month against the projected 190,000, triggering wider macroeconomic concerns. This report has led to a push against inflation and is likely to see the Feds maintain current rates. On the impact of interest rate cuts on the crypto market, previous years have shown that investors tend to remove funds from risky assets after each rate hike. As a result of the recent projected shift in rate cuts, a fall in crypto prices has led to wider liquidations, though the market has displayed a slight rebound in the last 24 hours, with Bitcoin trading at $69,734 and Ethereum at $3,686, reflecting a 0.2% decline today.