Reason for the rise of currencies
Expectations for a rate cut and historical context
• The market calculates a 99% probability of a rate cut by the Federal Reserve in September (by 25 basis points)
• Powell's speech at Jackson Hole (August 22) is likely to indicate a policy easing without explicit promises
• Historical pattern: Digital assets tend to rise during periods of monetary policy easing by the Federal Reserve (example 2024)
• A decrease in interest rates leads to an increase in liquidity flow towards high-risk assets like cryptocurrencies