Cryptocurrencies experience a pause after the strong rise in recent days, which allowed Bitcoin (BTC) reach new all-time highs. Now, the main digital currency cuts moderately and remains around the US$122,500.
More pronounced are the declines in Ethereum (ETH)which lost almost 5% in the last 24 hours and lost the level of US$4,400.
Among the rest of the altcoins, Binance Coin (BNB) it advances 0.1% and during the last hours it snatched the position of third largest cryptocurrency in the market from XRPwhich fell 3.2%, like Solana (SUN), Dogecoin (DOGE) and Cardano (ADA).
Natural correction
According to industry analysts, These falls respond to a natural correction and should not surprise investors after the recent similar movements of bitcoin.
In fact, Every high recorded this year was followed by a sharp and rapid cutwith operators taking advantage of the large profits of the leading crypto to take profits. The gold jumpwhich has already exceeded US$4,000also contributed to this correction.
Specialists point to two key and interrelated factors: the macroeconomic situation of the United States and the monetary easing of the Federal Reserve (Fed).
The shutdown of the US government not only puts pressure on the country’s weakened labor market, as the possibility of thousands of layoffs in the federal administration remains latent, but It also leaves the central bank without clear references on the direction of the economy..
Pressure on the Fed
In this context, Stephen MiranFed governor appointed directly by President Donald Trump, He indicated that he expects that the neutral level of official rates should be 0.5%compared to the 3% currently projected by the Federal Reserve.
Miran, aligned with Trump, defends an ultra-loose monetary policy: at the last meeting of the monetary authority, one of the members of the FOMCwhose vote is secret, was in favor of reducing rates by 1.25%, compared to the average of 0.5%, and everything indicates that it was him.
This Thursday the minutes of the last Fed meeting will be known, which will provide more information about the central bank’s vision regarding the situation of the world’s leading economy.
Neel Kashkaripresident of the Minneapolis Fed, yesterday warned of signs of stagflation in a context of slowdown in the labor market and persistent inflation around 3%. For its part, Raphael Bostic of the Atlanta Fedminimized the recent weaknesses in the labor market and assured that an economic recession is not expected in the business sector.
Source: Ambito
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