Cryptocurrencies, stocks bounce as Powell calms traders 

Bitcoin retook $68,000 Thursday, rallying close to 4% in 24-hours while ether gained 2% to sit around $3,400

share

Bitcoin and ether pared losses Thursday, rebounding alongside stocks as the Federal Reserve tried to calm traders with assurances that rate cuts are still coming sometime this year. 

Bitcoin (BTC) retook $68,000 Thursday, rallying close to 4% in 24-hours after a disappointing start to the second quarter of 2024. Ether (ETH) similarly was on the comeback Thursday, gaining more than 2% to trade just under $3,400 at time of publication, according to Coinbase. 

The S&P 500 and Nasdaq Composite indexes also turned things around Thursday, gaining 0.7% and 1.1%, respectively, as traders digested Federal Reserve Chairman Jerome Powell’s comments on Wednesday. 

Read more: How the halving could impact bitcoin’s price

The head of the central bank confirmed this week that lower rates are still expected to come at “some point” before the end of 2024. Still, Powell said, the road to lower inflation has been “bumpy,” and with better-than-expected data — like Tuesday’s March ISM Manufacturing PMI, which topped 50 for the first time in a year and a half — the Fed’s path forward is still uncertain. 

The US Federal Reserve, as Chair Powell is fond of reminding us, is now “‘data dependent,’ which presumably means its decisions will depend on the economic data the organization receives,” Noelle Acheson, author of the Crypto is Macro Now newsletter said. “The main advantages of a central bank declaring it is ‘data dependent’ are 1) the public-facing reassurance that reality matters more than theory, and 2) the flexibility to adapt to events.”

Read more: What banking sector uncertainty could mean for crypto markets

Of course, Acheson added, the downside to data-dependence is that the numbers are backward-looking, meaning action is delayed. There is also some disagreement about which metrics really matter. 

The Bureau of Labor Statistics is slated to release the March employment report Friday. Analysts are expecting unemployment to remain unchanged at 3.9% — far below the historical average around 5.7%. If the economy looks like it’s accelerating too quickly, central bankers will opt for the “no landing,” i.e. going back to hiking rates, analysts said.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report cover graphics (4).jpg

Research

Despite crypto gaming related projects and funds raising close to a billion dollars in November 2021, there have been only a handful of games that have attracted users apart from mercenary capital, and have had sustained activity for longer than a few months. Crypto gaming is going through an infrastructure phase. Theoretically, crypto gaming stands to benefit from purpose-built, high throughput chains, where blockspace is cheap (especially for games which are fully onchain). However, despite the launch of many gaming-focused chains, most crypto games are lacking in quality and quantity. Most new crypto gaming infrastructure either have no games or only a few games launched (e.g. Xai) or have failed to garner meaningful attention (e.g. Immutable X).

article-image

As Bloomberg analysts up their ether ETF approval odds, concerns about ETH’s liquidity and its possible status as a security remain

article-image

Ethereum is becoming a multilayered lasagna-like system, pushing people to the margins with its complexity and fees

article-image

Ether would be set to re-test its 2021 price high should the regulator unexpectedly approve ETH funds, industry watchers say

article-image

The Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act, is expected to head to the floor for a vote in the House in the afternoon on May 22

article-image

NYAG announced details about its settlement with bankrupt lender Genesis on Monday

article-image

The $948 million of inflows from May 13 to May 17 roughly equaled the net money that left the fund category over the five prior weeks