The latest statistics on the American economic situation show that the rate of economic growth in this country has decreased significantly, and this issue could force the US central bank to make a partial return from contractionary monetary policies and reduce the rate of increase in bank interest rates in this country; According to experts, this action will ultimately lead to the decline of the dollar in global markets and the growth of digital currencies.
To Report CoinDesk, according to recently published statistics, the sale of new homes in the United States during the month of July (July) decreased by 12.6% compared to the previous month and reached the lowest level since July 2016. As this important news about the US housing market was released, most of the cryptocurrencies saw a rise in price on Tuesday.
Bitcoin has grown by 2% in the last 24 hours and with the softening of the news related to the economy, and Ethereum has experienced an increase of 4.35% in this period of time. Polkadat and Olench are among the tokens that have increased in price by more than 4% in the past day and night.
The decline in the sale of newly built houses in the United States is an important issue, because it shows that the policies of the Central Bank of the United States to curb inflation in this country are slowing down the pace of economic growth; That too without bringing the economy into recession.
Joshua Lim, senior expert at Genesis Trading, said:
Bad economic news continues [برای بازار ارزهای دیجیتال] They appear in the role of positive news. The decline in housing sales in the US can encourage the central bank to adopt policies to increase the speed of economic growth; An action that will eventually reduce the value of the dollar again [در بازارهای جهانی] And the growth of digital currencies will lead.
Digital currencies started the new week with a bang, while most market traders are waiting for the economic policy meeting of the Federal Reserve Bank of America, which is scheduled to start on Thursday. US Federal Reserve Chairman Jerome Powell is expected to give a speech at the Kansas City Federal Reserve branch on Friday, where he will hint at the country’s central bank’s view on how much interest rates will increase in the future.
Traders are now hoping to hear positive news. Last week, the minutes of the July meeting of the Central Bank of America were published. The text of this meeting made traders more worried about the future decisions of the Central Bank of America; Especially about the changes in September, where the bank interest rate is likely to increase once again.
A little earlier, however, on Monday, most of the digital currencies faced a price drop, and as you can see, bearish sentiments intensified during the trading hours of Tuesday in the United States, which is probably the reason for the release of data related to the decline in sales of newly built homes in this country.
The FedWatch Tool index of the Chicago Mercantile Exchange, which is a tool for measuring investors’ sentiments about the monetary policies of the US government, shows that traders are mostly unsure about the changes that are going to happen next. Until one day ago, the same traders imagined a 57% chance of another 0.75 percentage point increase in the bank interest rate in the United States.
On Tuesday, however, the opinion of these traders had a fundamental change and this time they envisioned a 58.5% chance for a 0.50 percentage point increase in the bank interest rate in the next stage; Which is almost the same as their prediction a week ago.
An increase of 0.50 or 0.75 percentage points in the bank interest rate next month, both are likely to hit the financial markets, while investors think that the recent comments of the bank officials are more towards increasing the pace of economic growth and relative return. It is burdened by contractionary policies. All in all, it should be said that if the Central Bank decides to increase the interest rate by 0.75 percentage points again, it means that compared to the beginning of this month, when the data related to the decrease in the rate of inflation growth in this country was published, it is more concerned about the increase in prices.