Bitcoin climbs to $61.7k as Fed minutes trace at charge lower in September

Bitcoin (BTC) is again above $61,000 after leaping 3.5% prior to now 24 hours, fueled by the discharge of bullish Fed minutes associated to the July assembly on Aug. 21.

Ethereum (ETH) adopted with 1.5% development in the identical interval, whereas Solana (SOL) remained within the crimson for the day — down 0.6% as of press time.

The minutes’ abstract doubles down on Fed Chairman Jerome Powell‘s current remarks a few probably rate of interest lower if market information continues to come back in step with expectations. The doc reads:

“The overwhelming majority noticed that, if the information continued to come back in about as anticipated, it might probably be applicable to ease coverage on the subsequent assembly.”

Notably, the doc additionally hints at a 25 foundation factors (bps) charge lower because of “current progress on inflation” and “will increase within the unemployment charge.” This is able to deliver the rate of interest benchmark to five% from the present 5.25%.

The information is constructive for crypto and different threat property, because the discount in bond yields makes them extra engaging.

The fairness market additionally reacted positively to the Fed minute, with the S&P 500, Nasdaq, and Dow Jones closing the day with constructive actions of 0.42%, 0.57%, and 0.14%, respectively.

Curiously, the percentages of a 25 bps lower fell to 72% from 77% on Polymarket following the Fed minutes, whereas the percentages of a 50 bps or extra rose to 22% from 18%.

US elections may doubtlessly maintain costs down

Regardless of the potential bullish final result in September, Bitfinex analysts consider probably the most vital narrative impacting crypto markets is the upcoming US presidential elections.

In accordance with the analysts:

“As Democrat nominee Harris has seen a rise in odds of successful to virtually equal Republican nominee, former President Trump’s odds, it induces uncertainty in markets, particularly crypto.”

After falling 10% under Vice President Kamala Harris’ odds of successful the election, former President Donald Trump’s odds recovered to 52% on Polymarket and at the moment are 5% forward of the Democrat candidate whose odds have fallen to 47%.

Nonetheless, regardless of the election final result remaining unsure, Bitfinex analysts consider that the market will recuperate if Trump’s odds have already bottomed.