, I highlighted that we were heading for the low liquidity season of the year and that the crypto markets would need a pause before trending higher. At this moment in time, I think the sluggish summer may finally be coming to an end.
Another interesting aspect is Trump’s choice of running mate, JD Vance. JD Vance is a self-proclaimed BTC holder, has been a strong proponent of the crypto industry in the Senate, and one of Gary Gensler's most vocal critics in recent years.It’s now been a year since the Fed raised its benchmark rate to between 5.25% and 5.5%, holding this target range steady to date.
Additionally, Jerome Powell appeared on Capitol Hill this month and warned that “reducing policy restraint too late or too little could unduly weaken economic activity and employment.”It is still quite a balancing act for the Fed, but it seems inevitable that something has to move sooner rather than later. Currently, the market is predicting a 95.3% chance of a rate cut in September’s FOMC meeting.
On the brighter side, repayments in-kind do not equal selling pressure as creditors may decide to HODL their BTC. Additionally, there are some macro and industry-specific factors that could be catalysts in sustaining the current price levels or pushing BTC higher: