Crypto Markets Plunge as Economic Data Dampens Fed Rate Cut Expectations
Leading cryptocurrencies experienced significant declines alongside stocks as robust economic indicators reduced Federal Reserve rate cut prospects.
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Cryptocurrency markets faced substantial volatility on Thursday, with major digital assets declining sharply alongside traditional stock markets. Bitcoin fell 3.11% to $109,768, while Ethereum dropped 4.41% to $3,941.99. Other cryptocurrencies like XRP (-4.83%) and Dogecoin (-5.31%) also experienced significant losses.
The market downturn was primarily driven by stronger-than-expected US economic data, including 3.8% GDP growth and declining jobless claims. This robust economic performance reduced expectations for Federal Reserve interest rate cuts, with the probability of an October rate cut falling from 92% to 85.5%. The crypto market saw intense selling pressure, with $1.20 billion liquidated in 24 hours.
Despite the current correction, analyst Michaël van de Poppe suggests that 90% of the downturn may be complete, predicting potential recovery ahead.
Original Article
benzinga.comhttps://www.benzinga.com/crypto/cryptocurrency/25/09/47881655/bitcoin-ethereum-xrp-dogecoin-bleed-as-hot-macro-data-dashes-rate-cut-hopes-analyst-says-90