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Crypto Market Rallies Higher as BofA Predicts 0.75% Rate Cut
The post Crypto Market Rallies Higher as BofA Predicts 0.75% Rate Cut appeared on BitcoinEthereumNews.com. The crypto market surged on Thursday, with Bitcoin and Ethereum leading the gains, as Bank of America (BofA) Global Research revised its forecast for the U.S. Federal Reserve’s interest rate cuts in the fourth quarter of 2024. They now expect the central bank to cut interest rates by 75 basis points (bps), which spurred further crypto rally. BofA Prediction for Fed Rate Cuts In Q4 BofA was the only major brokerage to adjust its forecast, predicting a 75-basis point cut in the fourth quarter. This is an upward revision from its previous outlook, which anticipated two smaller 25-basis point cuts in November and December. The change came just a day after the Federal Reserve surprised markets with an outsized 50 basis point rate cut. According to Chair Jerome Powell, the move was aimed at “sustaining a low unemployment rate now that inflation has eased.” The policymakers at the Federal Reserve had already projected a 50 bps reduction by the end of 2024, but the recent rate cut signals a more aggressive stance. BofA economists echoed this sentiment, stating, “we are skeptical that the Fed will want to deliver a hawkish surprise,” according to Reuters report. The brokerage now expects a cumulative 125-basis point reduction in 2025. This reduction would bring the federal funds rate to a range of 2.75% to 3.00%, down from the current level of 4.75% to 5.00%. Crypto Market Rally Today The Fed rate cut announcement also had ripple effects across the broader financial market, particularly in the crypto market. Bitcoin price jumped 5.35%, pushing its price to $63,185.29 at press time. Meanwhile, Ethereum price rallied 5.90% to $2,447.10 today. Other major cryptocurrencies saw gains as well, with Solana rising 9% and Cardano climbing 6%. The prospect of looser monetary policy is seen as a positive catalyst…
The post Crypto Market Rallies Higher as BofA Predicts 0.75% Rate Cut appeared on BitcoinEthereumNews.com.
The crypto market surged on Thursday, with Bitcoin and Ethereum leading the gains, as Bank of America (BofA) Global Research revised its forecast for the U.S. Federal Reserve’s interest rate cuts in the fourth quarter of 2024. They now expect the central bank to cut interest rates by 75 basis points (bps), which spurred further crypto rally. BofA Prediction for Fed Rate Cuts In Q4 BofA was the only major brokerage to adjust its forecast, predicting a 75-basis point cut in the fourth quarter. This is an upward revision from its previous outlook, which anticipated two smaller 25-basis point cuts in November and December. The change came just a day after the Federal Reserve surprised markets with an outsized 50 basis point rate cut. According to Chair Jerome Powell, the move was aimed at “sustaining a low unemployment rate now that inflation has eased.” The policymakers at the Federal Reserve had already projected a 50 bps reduction by the end of 2024, but the recent rate cut signals a more aggressive stance. BofA economists echoed this sentiment, stating, “we are skeptical that the Fed will want to deliver a hawkish surprise,” according to Reuters report. The brokerage now expects a cumulative 125-basis point reduction in 2025. This reduction would bring the federal funds rate to a range of 2.75% to 3.00%, down from the current level of 4.75% to 5.00%. Crypto Market Rally Today The Fed rate cut announcement also had ripple effects across the broader financial market, particularly in the crypto market. Bitcoin price jumped 5.35%, pushing its price to $63,185.29 at press time. Meanwhile, Ethereum price rallied 5.90% to $2,447.10 today. Other major cryptocurrencies saw gains as well, with Solana rising 9% and Cardano climbing 6%. The prospect of looser monetary policy is seen as a positive catalyst…
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