Bitcoin, Ether Surge to Three-Week Highs Amid Rate Cut Speculation
- Altcoins like solana (SOL) and dogecoin (DOGE) have recently seen significant gains. SOL rose by 17% and DOGE by 25% over the past week.
- Interest in these altcoins is due to anticipated ETFs and new crypto treasury companies focusing on them.
- Bitcoin (BTC) and ether (ETH), previously overlooked, are gaining traction with BTC up 2% to $116,600 and ETH up 5% to $4,650.
- The price surge follows Federal Reserve Chairman Jerome Powell's shift from a hawkish to dovish stance regarding monetary policy.
- Powell highlighted the need to focus on the weakening labor market over inflation, influencing traders' expectations of a rate cut.
- After Powell's speech, BTC rose from about $112,000 to over $117,000, while ETH soared from below $4,300 to nearly $5,000.
- The upcoming Fed meeting is expected to result in a 25 basis point rate cut, adjusting the fed funds rate to 4%-4.25%.
