Crypto feeling returned to “GREED” on Saturday while the cryptography market had jumped, following comments from the presidency of the American federal reserve Jerome Powell which increased the speculation of a possible drop in rate in September.
The Crypto Fear & Greed index, which measures the overall feeling of the cryptography market, reached a “greed” score of 60 Saturday, up 10 points compared to the “neutral” reading of 50, after having briefly plunged into fear earlier in the week.
The rebound came after Powell’s speech to the annual economic symposium of Jackson Hole on Friday, where he declared that the current conditions of inflation and the labor market “could justify the adaptation” of the position of the monetary policy of the Fed.
ETH is “the aspect most sensitive to crypto rates”
After Powell’s speech, Bitcoin (BTC) jumped from 5% to $ 117,300, liquidating $ 379.88 million in shorts. Meanwhile, Ether (ETH) recovered its peaks from all time in 2021 of $ 4,878, reaching $ 4,851, which represents an increase of 11.51% compared to the 24 hours, according to CoinmarketCap.
In a post X on the same day, the co-founder of Axie Infinity, Jeffrey “Jiho” Zirlin, called Ether “the aspect most sensitive to crypto rates”.
“As the interest rates drop, the spread between what can be won by depositing your stabbed in DEFI vs deposit your USD in a widen bank,” he said.
According to the CME Fedwatch tool, 75% of market players provide for a drop in rates at the Fed meeting on September 17. Feeling Kobeissi’s letter said: “It seems that the president of Fed Powell opens the way to a drop in September.”
Historically, Fed flow drops increase liquidity and make assets more risky such as the crypto more attractive.
The participants in the cryptography market expected the wave
However, St. Louis Fed’s president Alberto Musalem told Reuters on Friday that he still needed more time to decide whether he would support a drop in interest rates.
“I will update my prospects and my risks throughout the risks and up to two days, three days before the meeting,” he said.
Earlier in the week, several players in the cryptography market anticipated a cryptography market if Powell was referring to a drop in rate.
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Author Jason Williams said on Wednesday, if Powell “came smoothly and the rate reductions are likely, we turbo RIP.”
The crypto joke merchant directed Neuner said: “Jackson Hole will shape Crypto management in the future”, before adding: “Trump pushes for a rate reduction with reason, but Powell will he listen to?
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