Crypto markets show modest recovery after the weekend dip
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🦅 Powell holds firm - The Fed kept rates unchanged, and Powell suggested the economy isn’t under enough pressure yet to warrant cuts.
📊 Eyes on data - With signs of a cooling US jobs market, upcoming economic data will shape expectations for the Fed’s September decision.
The broader crypto market is bouncing back this morning after a weekend dip, following Fed Chair Jerome Powell’s remarks during Friday’s interest rate announcement. While the S&P 500 slid another 1.6% overnight, Bitcoin and altcoins are trading modestly in the green.
Ethereum is showing a bit more momentum, climbing more than 2% overnight, while XRP has gained 4%. The Fed’s decision to keep rates steady came as no surprise, but analysts say markets may be reacting to Powell’s comments suggesting the economy isn’t showing enough stress from higher rates to justify cuts, at least not yet.
Looking at the macro picture, analysts say August’s economic data will be key to shaping the Fed’s tone heading into the September meeting. The US jobs report released on 1 August already flagged signs of a cooling labour market. Will it be enough for interest rate cuts in September?
Now the focus shifts to whether this bounce marks the start of a broader recovery.
In the markets…
🌍 Total crypto market cap ↗️
The global crypto market cap is approximately $3.72 trillion, up 1.7% over the past 24 hours.
🟠 Bitcoin (BTC) ↗️
Price: $114,513, up 0.75% in the last 24 h
Daily high: $114,869
Daily low: $113,582
📈 S&P 500 ↘️
SPY is currently up about 1.6% since yesterday’s close.
🥳 Fear & Greed Index
The Crypto Fear & Greed Index stands at 52/100, indicating a neutral sentiment among investors.
📊 Bitcoin Relative Strength Index (RSI) (14)
The 14-day RSI for BTC is approximately 57, in neutral territory.
Data is accurate as at 07:29 GMT, 04 August.
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
