4 Cryptocurrencies to Watch After Jerome Powell Jackson Hole Update

The current US benchmark rate for the central bank’s massive overnight money market lending is between 5.25% and 5.5%.

When Powell spoke on Friday in Jackson Hole, Wyoming, markets were expecting more signs of a rate cut regime. Instead, he went a step further and explicitly endorsed tariff cuts. In fact, he said, it’s not a question of whether there will be cuts, but how deep to make them:

“The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.”

How it could affect cryptocurrency prices

Lower interest rates and increased dollar supply could boost cryptocurrency prices for blockchains with supply-constrained token economies. Some digital assets correspond to inventories that have hard supply limits. In a dollar environment with low interest rates, they can become precious commodities.

Tom Porcelli, US Chief Economist at PGIM Fixed Income, said:

“I don’t think the Fed should be afraid of inflation. At this point, it’s right that the Fed is more focused on jobs versus inflation. Their policy is calibrated for much higher inflation than that.”

Also, the Bureau of Labor Statistics releases a revision of first-quarter job growth, showing it was a million jobs lower than the previous estimate. Weaker labor markets, combined with falling consumer prices, give the Fed the opportunity and impetus to make sharp cuts when rates fall.

This provides the economy with a more abundant flow of cheaper credit to grow their businesses, which is also good for automated blockchain-powered Web3 businesses.

Unlike the US dollar and other central bank currencies, the following four cryptocurrencies have hard supply limits that limit their expansion. Some crypto investors like this because it means that increasing dollar supplies can add support to their prices.

1. For Keeps: Bitcoin (BTC)

Like benchmark interest rates and industrial energy prices per kilowatt hour, the price of Bitcoin is always on the radar of crypto traders. The seminal and class-leading cryptocurrency was such a huge success in the first place largely because of its limited supply of monetary incentives.

The dollar is plummeting
Now negative for the year pic.twitter.com/7ALO0Y7wo9

— Tom Crown (@TomCrownCrypto) August 21, 2024

As the Federal Reserve soon returns to a regime of interest rate cuts, what observers call a “dovish” Fed, as opposed to a “hawkish” rate-hiking Fed, the economy of most abundant supply of dollars against the most beloved supply of Bitcoin. it tends to become a strong support for the Bitcoin price in the long term, with large short-term gains when markets rally.

2. Build and Build (BNB) Stay Big

Binance Coin (BNB) is another token with limited supply to watch when the Fed starts moving rates again. BNB is the main token in the Binance ecosystem, with discounted fees and other benefits.

In addition to traders using them as a native exchange currency on Binance, BNB is the stem cell smart contract token for Binance Smart Chain (BSC), currently known as Build ‘N’ Build Chain . You can pack a lot of standalone features into these bad boys.

BNB led 24-hour gains among major cryptocurrencies on Tuesday, while Bitcoin, Ethereum, Solana and Dogecoin corrected. Binance Coin prices could rise again soon. Changpeng Zhao, founder and former CEO of the crypto exchange, is finishing his four-month prison sentence in a few weeks.

The cryptocurrency was up nearly 7.5% for the week on Sunday and 2.4% for the 1-month period. It has increased by 165% over the trailing 12 month period.

3. Ripple (XRP) connects the world

Ripple tokens (XRP) aim to connect the world. This is the result of RippleNet’s fast, low-cost, secure and reliable protocols for business cross-border payments, tailored for banks and institutions.

Since December 2020, XRP has faced headwinds from the SEC lawsuit. But after a growing string of court victories, the short- and long-term outlook for XRP looks promising.

Ripple prices rose earlier this week as they gained momentum to the upside. Daily trading volume increased by 60% as the asset increased by 4.5% in 24 hours. One analyst recently predicted a possible near-term market gain for resistance at $0.65.

XRP was still up 6% on the 7D window and over 2% on the 30-day chart on Sunday. It has gained 16% annually.

It is a cryptocurrency with a supply limit. Its supply relative to central bank currencies like the dollar is a major factor in its crypto price on exchange markets, in addition to its tradable use cases.

4. Cardano (ADA) is making changes

With the Cardano Chang upgrade underway and aiming for completion soon, markets may reward the Ethereum alternative by increasing ADA prices on crypto exchanges.

Chang’s update will give token holders more power over the governance of the network. This will enhance the value of ADA with more features and benefits and a stronger decentralization goal.

Cardano price led the 24-hour and 7-day gains among major cryptocurrencies on Wednesday, posting an 8.6% gain for the week on a 7% daily candle.

Meanwhile, Bitcoin and Ethereum were up one and a half percent and one percent for the day respectively, with Bitcoin up one percent for the week and Ethereum price up 2.5 percent over the seven-day period.

Cardano still made gains on Sunday, with a 15% gain on August 25 over Sunday prices a week ago. Therefore, it is likely that the update narrative is still fueling the ADA economy inputs of crypto investors who read the news.

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