ChainCatcher news, short-term interest rate futures traders believe that the Federal Reserve is more likely to cut rates by 25 basis points in November rather than 50 basis points. (Jin Ten)

ChainCatcher news, Binance CEO Richard Teng commented on the expectations of interest rate cuts, stating, "We expect that the expectations of interest rate cuts will have a significant impact on the prices of crypto assets. Lower interest rates enhance the liquidity of the financial system, thereby boosting the demand for high-yield, high-risk assets, including cryptocurrencies. For example, from February 2020 to February 2022, when interest rates were near zero, the price of Bitcoin increased by 375%.Lower interest rates may raise concerns about inflation, prompting some investors to turn to cryptocurrencies to protect their purchasing power; low rates may also weaken the dollar, leading more investors to view crypto assets as an alternative store of value. Bitcoin and other crypto assets have unique characteristics that may influence their prospects during periods of interest rate cuts. One key factor to consider is the recent Bitcoin halving, as historically, price increases have generally occurred 6-18 months after similar events. The launch of spot ETFs could also facilitate easier transitions between stocks and cryptocurrencies, allowing the liquidity growth brought by interest rate cuts to flow into the crypto market.Moreover, while September is typically a weak month for crypto assets, prices usually begin to rebound in October, and the expectations of interest rate cuts may provide additional momentum as prices recover. The impact of the Federal Reserve's interest rate cuts on the crypto asset market remains uncertain, but several indicators suggest that the policy changes in September may be timely for cryptocurrency investors. Lower borrowing costs and increased liquidity present a hopeful outlook for crypto assets. Historical trends and unique cryptocurrency-specific variables further enhance optimism that these policy changes could foster growth."

ChainCatcher news, Steve Englander, the Global G10 FX Research and North America Macro Strategy Head at Standard Chartered Bank's New York branch, stated that recent U.S. economic data does not provide a compelling reason for a 50 basis point rate cut at the upcoming FOMC meeting. A 50 basis point cut with a decision error could be worse than a 25 basis point cut with a decision error. The rationale for a 25 basis point cut is that the upcoming inflation data does not support inflation rapidly approaching the 2% target. Meanwhile, the recent rise in unemployment also indicates a concerning deterioration in the economy. (Jin Shi)

ChainCatcher news, as traders increasingly lean towards betting on a 50 basis point rate cut by the Federal Reserve this week, the dollar fell during the Asian trading session on Monday. The decline of the dollar boosted major currencies like the yen, which rose to its highest level since July 2023.After weeks of debate over whether the Federal Reserve would initiate its easing policy with a 25 or 50 basis point cut, traders are leaning towards the latter option. Futures prices linked to the Fed's rate cut decision this week indicate a roughly 58% chance of a 50 basis point cut, compared to a 50-50 prediction late last Friday.Rodrigo Catril, a strategist at the National Australia Bank, stated, "We believe the Federal Reserve is about to enter a new round of easing, which is a significant disadvantage for the dollar. As the Fed relaxes monetary policy next year, lowering the fund rate to neutral or even below neutral levels, the dollar will begin a cyclical decline." (Jin Ten)

ChainCatcher news, Elmar Voelker, a senior fixed income analyst at Landesbank Baden-Württemberg (LBBW), said in a report that the new interest rate expectations, or dot plot, to be released by the Federal Reserve at next week's meeting are unlikely to align with the currently warming expectations for rate cuts. He stated, "Whether the forecast adjustments can keep pace with market expectations seems at least questionable." The same goes for the 2025 forecast.Voelker noted that the dot plot could become a "potential stumbling block for rising bond prices." The market speculates that the Federal Reserve may cut rates significantly by 50 basis points next week, but the bank's recent forecast only suggests a rate cut of 25 basis points this year. (Jin Shi)

ChainCatcher news, Greeks.live macro researcher Adam posted on social media that Powell's speech at the Jackson Hole global central bank conference clarified the Fed's interest rate cut in September. There is currently a consensus on a 25 basis point cut, but if economic data pressures are significant this month, a 50 basis point cut is also possible. The clear commitment to rate cuts has given the market great confidence, leading to a rebound in major cryptocurrencies, although the subsequent trend still carries a lot of uncertainty.This week, there are several important economic data releases, as well as speeches from several key figures, primarily focused on the Fed's rate cut in September. Additionally, Russia's cryptocurrency legislation is also worth paying attention to, as crypto begins to take center stage.ETH has remained sluggish since the Cancun upgrade, with Gas now below 0.8 Gwei. The significant reduction in ETH consumption has caused the deflationary flywheel to fail, and currently, there seems to be no opportunity for an ETH exchange rate rebound, making the bearish ratio a good value for money.Key Events This Week:8/27 Tuesday2024 FOMC voting member and San Francisco Fed President Daly speaks8/28 WednesdayFederal Reserve Governor Waller speaks8/29 ThursdayInitial jobless claims in the U.S. for the week2024 FOMC voting member and Atlanta Fed President Bostic speaks on economic outlook8/30 FridayU.S. July Core PCE Price Index Year-on-YearU.S. August University of Michigan Consumer Sentiment Index Final2024 FOMC voting member and Atlanta Fed President Bostic speaks on monetary policy and economic outlookRussia will begin implementing the digital currency cross-border payment law and the legalization of cryptocurrency mining legislation

ChainCatcher news, Quilter Investors' investment strategist Lindsay James stated that President Biden's withdrawal from the presidential race and support for Kamala Harris reduces the likelihood of a Trump landslide victory, and the market may experience some volatility in the next four months.However, she wrote in a research report that, compared to election news, interest rate cut expectations will still be the driving factor for market returns. She added that the market is increasingly pricing in a Trump victory, with small companies being buoyed by widespread expectations of import tariffs.

ChainCatcher news, according to Jinshi reports, JPMorgan has changed its Federal Reserve rate cut expectation from November to September.