The Wall Street rally in the first seven months of this year suffered a severe setback consecutively in August and September. Market participants remain highly concerned as the Fed warned of one more rate hike of 25 basis points by the end of this year and pursued a higher interest rate regime for a longer period. The first rate cut is not expected before September 2024 and the inflation rate is unlikely to decline to the central bank’s target rate of 2% before 2026.
A higher market interest rate is detrimental to high-growth sectors like technology, consumer discretionary and cryptocurrency. As a result, the crypto space is likely to face uncertainty in October. Prices of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) likely to remain volatile.
This post originally appeared at 24/7 Wall St.