Bitcoin and Ethereum Prices Rise on Speculation of Fed Rate Cut

• Bitcoin's price rises following the release of the US Federal Reserve's minutes suggesting an interest rate cut in September.
• Ethereum also sees a slight increase in price.
• Most officials at the meeting agreed to cut interest rates depending on economic data. - Jerome Powell is expected to reveal more about a timeframe for cuts at the Jackson Hole Monetary Policy Symposium.
• The Federal Reserve is not currently developing a central bank digital currency (CBDC).
• Inflation has eased but remains elevated, with progress made towards the Committee's 2% inflation objective.
  

Summary :
Bitcoin's price has risen following the release of the U.S. Federal Reserve's minutes from its July meeting, which indicated that an interest rate cut may occur in September. The price of Bitcoin currently stands at $60,500, a 2% increase in the past 24 hours. Ethereum, the second-largest cryptocurrency, has also seen a slight increase, trading at $2,640, a 1.8% rise. The minutes revealed that most officials at the meeting agreed that a rate cut would be appropriate depending on future economic data. All eyes are now on Federal Reserve Chair Jerome Powell, who is expected to provide more information about the timing of the cuts during the Jackson Hole Monetary Policy Symposium. The Federal Reserve had previously raised rates aggressively in 2022 to combat high inflation caused by the Covid-19 pandemic. However, both stocks and cryptocurrencies have performed well since then, with increased investment in U.S. equities and crypto due to the growth of Artificial Intelligence and the approval of spot Bitcoin ETFs. In other news, former President Donald Trump has expressed concerns about the implications of a digital dollar, while Federal Reserve Chair Jerome Powell stated that there have been no significant developments regarding a central bank digital currency (CBDC). The central bank's focus has been on reducing inflation, and the minutes indicate that progress has been made towards the Committee's 2% inflation target.

Sources :

- Decrypt