Ethereum

Reserve

United

<ul>
 <li>To rein down inflation, the Federal Reserve began its tightening cycle in March 2022.</li>
 <li>Crypto and other risky assets were hit hard by the increase in borrowing rates last year.</li>
</ul>
Reuters reported on Monday that investment firm <a href="https://www.goldmansachs.com/" target="_blank" rel="noopener noreferrer nofollow">Goldman Sachs</a> revised its prediction for the first interest-rate decrease by the <a href="https://thenewscrypto.com/us-fed-keeps-interest-rates-unchanged-bitcoin-hits-17-month-high/" target="_blank" rel="noopener noreferrer nofollow">Federal Reserve</a> from Q4 to the Q3 of next year.
This change occurs at a time when the cryptocurrency market as a whole, and bitcoin in particular, have been experiencing a bullish momentum. The factors likely driving this momentum include the prospect of a spot ETF launch in the United States, the upcoming halving of <a href="https://thenewscrypto.com/bitcoin-price-plunges-over-5-find-out-why/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> mining rewards, and a fall in the yield on the 10-year U.S. Treasury, also known as the risk-free rate.
<h3 class="wp-block-heading" id="h-tightening-cycle">Tightening Cycle</h3>
Fed funds futures traders expect the benchmark interest rate, which is now between 5.25% and 5.5%, to drop to a range commencing at 4% by the end of next year.
To rein down inflation, the Federal Reserve began its tightening cycle in March 2022 and raised interest rates many times between 0-0.25%, the most recent of them being in July. Cryptocurrencies and other risky assets were hit hard by the sharp increase in borrowing rates last year.
A shaky start to the week ensued as intraday activity in the crypto market turned bearish. Data collected by <a href="http://coinmarketcap" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a> shows that Bitcoin saw a severe 5% daily drop, with a low of $41,649 and a subsequent recovery to $42,510.
According to CoinShares’ weekly cryptocurrency report, $43 million was deposited, despite investors’ worries over the recent flash selloff. The lion’s share of investment capital went into Bitcoin. The $9.7 million that Ethereum saw last week was dwarfed by Bitcoin’s $19.8 million.
Highlighted Crypto News Today:
<a href="https://thenewscrypto.com/beyond-digital-assets-the-case-for-diversifying-your-investment-portfolio/" target="_blank" rel="noopener noreferrer nofollow">Beyond Digital Assets: The Case for Diversifying Your Investment Portfolio</a>

Goldman Sachs Revises Fed’s First Interest Rate Decrease Prediction

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