The crypto market could be on a strong bullish breakout crisis after the ETF approval deadline approaches after weak non-farm payroll data boosted demands by the Federal Reserve to cut back on interest rates.
summary
- The crypto market could rebound after the latest non-farm pay data.
- Economists are now hoping the Fed will cut interest rates in September.
- The cut coincides with future AltCoin ETF approvals.
Crypto markets that benefit from Fed cuts
The US government has released a weak employment report that confirmed the Federal Reserve will cut interest rates at upcoming meetings. The report showed that the economy added just 22,000 jobs in August, bringing the unemployment rate to 4.3%.
Therefore, most analysts believe the Fed will cut interest rates. Multi-tiered data shows that the odds for a 25 basis point reduction rose to 88%. Similarly, the CME FedWatch tool places the odds of the cut at 90%.
Some economists are looking at Fed cuts at 50 basis points as employment reports are weaker than expected. In a statement, Mohamed El Elian said:
“Weak reports reinforce the view that the Fed should be cut faster, especially last July. They even encourage discussions about the possibility of a more aggressive 50 bps cut at upcoming meetings.”
The report explains why Bitcoin (BTC) and Ethereum (ETH) reached $110,865 and $4,285, leading to the top cryptocurrencies rising. The total market capitalization of all coins jumped to $3.9 trillion.
Historically, cryptocurrencies work well if the Fed is cutting back on its reduction rates, as they did during the COVID-19 pandemic.
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AltCoin ETF approved
The Federal Reserve cuts coincide with the upcoming Altcoin ETF deadline. The SEC set a deadline for grayscale ETFs on October 18th to 21 shares on October 19th and Bitwise on October 20th. Other XRP ETFSWITH October deadlines come from companies such as WisdomTree, Coinshares and Franklin Templeton.
The agency also set deadlines for Dogecoin, Litecoin, Solana and Cardano in October. After some delays, agents can finally approve most of these ETFs in October. This is a move to raise the price of tokens.
Recent data shows strong demand for cryptographic ETFs. Bitcoin and Ethereum funds have been inflows of over $67 billion since their establishment. Similarly, XRP CME Futureshave recently passed a $1 billion contract. This is an accelerated trend.
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