With multiple interest rate increases in the last 2 years, investors have been speculating that the Fed would have controlled inflation by 2024.
Hence, there was wide market sentiment that the Fed would announce the commencement of an interest rate cut after its January 31st meeting. But things have taken a different turn with the Fed’s announcement, causing some volatility in the crypto market. How Speculations of Interest Rate Cuts Have Influenced Crypto Market
After the January 31st meeting, Fed Chair Jerome Powell acknowledged that he had made progress in controlling inflation with efforts to peg it to 2%. However, he cautiously avoided the Fed’s stance on potential interest rate cuts during his interview. According to Powell, the Fed wants to be more confident in the controlled inflation rate before announcing an interest rate cut. He further ascertained that a resolution on interest rate cuts may not be part of its announcements in March.
These revelations have crippled investor’s confidence, causing a decline in the price of popular cryptocurrencies. Bitcoin dropped by 2% within the first day of the announcement, causing other cryptocurrencies to also take a hit.
Over the weekend, however, investors’ faith was restored with a slight price increase. This can be linked to market speculations that the Fed may announce an interest cut in May 2024.
While current prices of major cryptocurrencies may appear slow, memecoins have experienced an impressive price surge. Some memecoins have taken center stage despite market fluctuations in the past 10 days.
Galaxy Fox On Route To $4 Million
Galaxy Fox (GFOX) has reached Stage 7 of its ICO with over $3.2 million from 98.5% of its tokens sales at $0.00198 per token. This coin blends the popular meme culture and rewarding Play-to-Earn (P2E) features. The coin rewards its investors by offering them an opportunity to be token holders and earn passive income by staking the token, playing P2E games, and utilizing their GFOX tokens.
Galaxy Fox’s Web3 is one of a kind. Players can earn GFOX tokens with this endless runner game based on their in-game performance. The top 20% of players each season will also be rewarded with gifts they can exchange for GFOX.
As part of its utility, Galaxy Fox has created NFT benefits. According to its whitepaper, 3,000 NFTs will be released during its presale, and investors can mint these NFTs from its website and trade them on OpenSea.
To give back to its community, 2% of every transaction will be added to Galaxy Fox Stargate. This gesture is expected to reinforce the coin’s community engagement in the GFOX token across social media platforms.
The coin surpassed its price speculation when it was launched, doing over $3.2 million in sales.
From the latest interviews of Fed Chair Jerome Powell, it appears that the Fed’s focus is inflation. While there has been some progress over the last year with the hike in interest rates to control inflation, the crypto market has been on the receiving end. Although a cut in interest rates will favor the crypto market, no one can say for certain when the Fed will announce one this year, and until then, the crypto market remains limited by lower supplies of cheap (i.e., low-interest) investment cash.
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