The hawks at Jackson Hall spoke to the encryption market again. Federal Reserve Chairman Kevin Walsh reiterated that 2 per cent of the inflation target was unshakeable and stated that the United States economy had performed better than expected, and that the credit and loan markets had not shown clear signs of tightening. As a result of this, the market renewed its bet on the September interest rate hike, which was lowered by bitcoin, the Ether and XRP.

The interest rate hike is expected to increase significantly in September.

In his statement, Walsh stated that price stability was a clear responsibility of the Fed and that there was no swing space. He added that wage growth, although moderate, was not a reliable indicator of future inflation, while medium-term inflation expectations remained generally stable.

After the meeting, interest rate markets quickly adjusted expectations. The data show that the probability of maintaining interest rates unchanged in September fell from 71 per cent to 50 per cent, while the probability of raising 25 basis points rose from 30 per cent to 49 per cent. In contrast, interest rate reductions are almost completely excluded, with only 1 per cent of the probability remaining.

Synchronise Encrypted Assets Back

After the risk preference cooled, the main encrypted assets generally fell:

  • Bitcoin, $77,901.87, down 3.1 per cent 24 hours
  • It's a 24-hour drop of US$ 2,444.00.
  • XRP report US$1.39, 24 hours down 5.0%

In addition, Solana reported a US$ 104.81, which fell by 1.9 per cent 24 hours, but increased by 15.2 per cent almost 7 days. Overall, the total market value of the encryption market fell to $2.74 trillion, a decline of 2.2 per cent per day.

Bitcoin faces extra pressure. It was reported that there was a large stock of sales in the vicinity of $81,000, and that the price was not stable after touching $81,500 and then falling back.

Market to September FOMC meeting

Despite short-line pressure, not all traders believed that the fall would continue. Marketers, Michaël van de Poppe, have indicated that downstream liquidity may have been largely released in the near future and that the previous lows have been touched upon once liquidation has been completed. In his view, bitcoin would not necessarily continue to decline significantly from its current position, and it was even more interesting to note whether some of it would be relatively strong if it were to be transferred across the board.

At present, the focus of the market is turning to the September FOMC meeting. In the context of a renewed interest-rate probability nearing a flat and near-disapprove of interest-rate expectations, encrypted assets are re-pricing more restrictive monetary policy paths. The fall was the beginning of a deeper adjustment or a short-term liquidity exercise, still dependent on market digestion of subsequent policy signals.