The post Will Bitcoin, altcoins sustain momentum after Powell speech? appeared on BitcoinEthereumNews.com.

Bitcoin and altcoins staged a strong comeback after Jerome Powell, the Federal Reserve chairman, hinted that interest rates would start falling in September. Bitcoin (BTC) jumped to $64,000 on Aug. 24 while Ethereum (ETH) pushed to $2,765. The total market cap of all coins rose by almost 5% to over $2.26.  The same trend happened in the stock market, where key indices like the Dow Jones, S&P 500, and the Nasdaq 100 approached their all-time highs. Still, there is a risk that gains in the stock and crypto market will be short-lived. Buy the rumor, sell the news The market was already factoring in rate cuts for September after the recent weaker-than-expected U.S. jobs numbers. The probability in the Fed Rate Monitor tool has been above 80% in the past three weeks. Therefore, Powell’s statement was just a clue as to what to expect at the next meeting, scheduled for Sept. 18. As such, with a rate cut fully priced in, there is a risk that stocks and crypto will retreat as investors sell the news.  This trend has happened several times. For example, Bitcoin dropped by almost 10% after halving, while Ether has fallen by double digits since the Securities and Exchange Commission approved ETFs. Stocks typically drop sharply after the Fed starts cutting rates. Geiger Capital, a conservative-leaning commentator on X.com, recalled 2001 and 2002 as examples. 🔸First Rate Cut – Jan 3, 2001– S&P 500 fell ~39% next 448 days– Unemployment rose another 2.1% 🔸First Rate Cut – Sep 18, 2007– S&P 500 fell ~54% next 372 days– Unemployment rose another 5.3% 🔸First Rate Cut – Sep 18, 2024– ?– ? pic.twitter.com/ByaP9mtGq4 — Geiger Capital (@Geiger_Capital) August 23, 2024 On the positive side, stocks have done well when the Fed starts cuts, as we saw in 2020…

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Filed under: News - @ August 24, 2024 6:21 pm