Recently, the financial market has been tumultuous, with various significant news constantly emerging, and these news have intricate connections with the crypto market ETH that we are paying attention to. Today, I'm here to have a good chat with everyone.
First, let's talk about the major event on the Federal Reserve side. San Francisco Fed President Daly stated that, given the weak labor market and the lack of persistent tariff-induced inflation signs, the timing for interest rate cuts is approaching. Although a rate cut in September is not yet certain, Daly mentioned that two cuts of 25 basis points within the year would be an appropriate adjustment, emphasizing that what matters is whether there will be a rate cut in September and December, rather than whether a rate cut will happen. If inflation rebounds or the labor market improves, there may be fewer than two cuts, but it is more likely to have more than two cuts; if the labor market remains weak with no inflation spillover, preparations for more rate cuts should be made.
The Fed's interest rate cut could have a significant impact on the crypto market. Generally speaking, a rate cut means there will be more money in the market and increased liquidity. For cryptocurrencies like ETH, there may be more capital inflow, driving prices up. Moreover, rate cuts are often accompanied by an increase in market risk appetite, leading investors to be more willing to invest in high-risk, high-reward assets like cryptocurrencies, which is good news for ETH.
Let's take a look at the news regarding international trade. The European Union will suspend trade countermeasures against the United States for 6 months, as a joint trade statement was reached, making these countermeasures unnecessary. Additionally, U.S. President Trump has mentioned significantly raising tariffs on India, citing that India is buying a large amount of Russian oil and reselling it on the open market for huge profits.
These changes in international trade frictions can affect the stability of the global economy and investor confidence. If trade tensions escalate, investors may seek safer assets, and the cryptocurrency market may experience some impact; conversely, if trade conditions ease and market confidence increases, funds may be more willing to flow into the cryptocurrency market, potentially benefiting ETH.
Currently, the price trend of ETH is also influenced by these macro factors. Under the expectation of Fed rate cuts, the overall market sentiment may lean towards optimism, and ETH is expected to usher in a wave of upward momentum. However, the uncertainty of international trade conditions may bring volatility to the market at any time.
Friends in the crypto circle, we need to closely monitor these macro dynamics and grasp the market rhythm. I will continue to bring you the latest analysis and interpretations, sailing smoothly in the crypto circle together!
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