Ethereum and others fizzle as rate cut optimism fades, and the Fed’s preferred inflation gauge, tomorrow
The Daily Brief is brought to you in partnership with BCB Group, Wincent, Vault12 and World Mobile.
📉 Fed rate cut fizzles - markets remain uncertain as optimism fades.
🟠 Bitcoin slips to ~$111.8K - Ethereum drops 3% in 24 hours.
📊 All eyes on tomorrow’s US PCE inflation data - key for Fed policy.
Risk-on markets continue to post losses as the Fed’s recent rate cut failed to spark a rally beyond the initial burst of investor optimism. Commentary from the Fed has been mixed, or absent. Fed Chair Jerome Powell has remained silent on whether he’ll back another cut at the next meeting, while Chicago Fed President Austan Goolsbee said he’s less inclined to support further easing given that “inflation is heading in the wrong way”, and the “mostly steady and solid jobs market.” The Fed’s dual mandate is to keep inflation in check while supporting stable employment, and it must constantly balance between the two.
Against this backdrop, Bitcoin (BTC) slipped 0.2% overnight to around $111,800, while Ethereum (ETH) fell 3% over 24 hours as the digital asset treasury narrative cools, according to 10X Research. Most crypto markets are trading lower, with only a few exceptions in the green.
Still, some analysts say the long-term case for Ethereum remains strong. Tom Lee, Fundstrat co-founder and BitMine Chairman, argued that Ethereum continues to be Wall Street and the White House’s preferred blockchain.
On the macro front, investors will be closely watching tomorrow’s US Core Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, which could influence expectations for future monetary policy.
In the markets…
🌍 Total crypto market cap ↘️
The global crypto market cap is approximately $3.9 trillion, down 1.6% from this time yesterday.
🟠 Bitcoin (BTC) ↘️
Price: $111,862 down 0.6% in the last 24 h.
Daily high: $113,941
Daily low: $111,518
📈 S&P 500 ↘️
SPY is currently down 0.28% since yesterday’s close.
📈 Nasdaq 100 ↘️
The Nasdaq 100 is down about 0.31% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 41/100, in Neutral.
*Data is correct as at 25 September, 07:30 GMT.
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.
