Crypto Market Rises Amid Positive Economic Indicators and Fed Speculations
On August 13, Bitcoin and other altcoins experienced significant gains as the Crypto Fear and Greed Index entered the green zone. This surge was supported by a growing sentiment that the Federal Reserve might cut interest rates in September.
Bitcoin breached $122,000, followed by Ethereum reaching above $4,700. notable gainers included Solana, Binance Coin, and Ripple.A shift toward optimism was evident as the Crypto Fear and greed Index reached 63, marking “greed” levels. This aligns with broader market trends, with CNN Money’s Fear and Greed Index climbing to 66, reflecting bullish equity indices like the S&P 500 and Nasdaq 100.
The boost is linked to anticipated Fed rate cuts in September due to July’s economic data. Treasury Secretary Scott Bessent recommended a 0.50% decrease, while President Donald Trump sought a larger reduction. Meanwhile, July’s inflation stayed at 2.7%, with service sector prices rising.
- cripto ETFs saw robust inflows.
- Institutional investors are actively purchasing crypto assets.
- Spot Ethereum ETFs gained over $1.7 billion this week.
James Toledano, COO of Unity Wallet, expects Ethereum might surpass its all-time high due to ETF inflows and institutional demand.
Derivatives-based ETFs also show increased asset accumulation.
This positive trend comes with risks. Analysts highlight cautious derivatives data and macroeconomic fears that could hinder growth.additionally, Bitcoin’s possible double-top pattern suggests a potential reversal.
