Market situation: The possibility of a decrease in the rate of interest rate growth in the United States has increased

The latest statistics on the American economic situation show that the rate of economic growth in this country has significantly decreased, 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 newly built 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 an increase 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 new homes 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 America 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.

Cryptocurrencies started the new week with a bang, while most market traders are waiting for the US Federal Reserve’s economic policy meeting, which is scheduled to begin 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.

On Monday, most of the digital currencies experienced a drop in price. However, traders’ bearish sentiments faded a little later during the US trading hours on Tuesday, possibly due to the release of data on the decline in new home sales in the country, as mentioned earlier.

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 not sure 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 will likely hit the financial markets, while investors think that the bottom of the recent comments of the banking authorities is more towards increasing the speed 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, that is, 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, there is more concern about the increase in prices.