Crypto Market Weakens in Q3 2024, US Economy Still the Culprit

Todaysgist, News The crypto market movement tended to weaken throughout the third quarter of 2024. Although it recovered, the strengthening of the crypto market did not last long.

On Tuesday, September 10, 2024, Bitcoin prices strengthened by 3.59 percent in the past day. Bitcoin was traded in the price range of USD 56,678 or equivalent to IDR 875.9 million (assuming an exchange rate of IDR 15,454 per US dollar).

Macroeconomic Impacts and the US Stock Market

Tokocrypto trader, Fyqieh Fachrur, explained that the movement of the crypto market in recent times cannot be separated from the dynamics of the global macro economy, especially from the US stock market.

“One of the main factors affecting crypto volatility is the Fed’s policy, especially regarding interest rate cuts. In August, Fed Chairman Jerome Powell indicated that interest rate cuts may be coming soon,” Fyqieh said in his statement, Tuesday (10/9/2024).

If this happens, the crypto market could respond positively, given that interest rate cuts typically allow investors to gain access to more capital.

With the increasing amount of cash in circulation, hedge assets such as Bitcoin tend to be more in demand. However, interest rate cuts also depend heavily on supportive market data.

US PCE inflation data in July which reached 2.5 percent and jobs data showing improvement in the economy, are the main benchmarks for the FED to consider the move.