As we enter the final weeks of summer, the crypto market began to heat up as if it were mid-July. Numerous news developments and trends that have fueled rallies in digital coins and tokens in the past began to give the market a boost again. As a result, many rose by comfortable double digits over the course of this week.

There was also a lot of variation in that uptick, according to data compiled by S&P Global Market Intelligence. Smart contract platform anchor coin Throne (CRYPTO: TRX) rose nearly 19% over the period, with a utility token Chain link (CRYPTO: LINK) not far behind with a gain of 17%. Everything-but-the-kitchen-sink chain BNB‘S (CRYPTO: BNB) native cryptocurrency surged nearly 13%, and meme crypto holders Pepe (CRYPTO: PEPE) were certainly pleased with the increase of almost 18%.

A very pleasant late summer revival

Cryptocurrencies have been in a tailspin — let’s call it a “correction” — since earlier this month. The release of US economic data raised fears of a looming recession, and that kind of environment is not good for most financial assets. It’s especially threatening for assets that are considered high risk, and even after all this time, most cryptos (except possibly Bitcoin and, at some point, Ethereum) fall into this category.

These growing fears were further heightened when the Federal Reserve (Fed) remained steadfast in its policy of keeping interest rates unchanged. All things being equal, lower interest rates encourage market players to pursue riskier investments, hence the crypto space’s thirst for a Fed rate cut or more.

The situation changed notably in the middle of the month. Last week, inflation figures showed that the current macroeconomic bogeyman seemed to be fading considerably. The year-on-year increase in the consumer price index (CPI) was 2.9%, which was the first time it fell below 3% since the pandemic month of March 2021. That figure was also well below many economists’ forecasts.

That good news was reinforced by this week’s analysis from the influential research organization Conference Board. Leading economic indicators (LEIs), considered by many to be reliable signals of potential economic distress, fell 2.1% in the six months ending in July. That compared favorably with the 3.1% decline in the previous half-year period. According to the board, this kind of trajectory “is no longer a signal that a recession is coming.” While economic growth is expected to slow, it should not be as drastic as some fear.

The story continues

It’s almost time for cuts!

Meanwhile, crypto investors — and the rest of the financial world — got their surest sign yet on Friday that the Fed is about to pull the trigger. Chairman Jerome Powell spoke of rate cuts as if they were an imminent event, rather than a remote possibility or wild speculation.

“It is time for policy to adapt,” he said in his keynote speech at the organization’s annual retreat. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the changing outlook and the balance of risks.”

Should You Invest $1,000 in TRON Now?

Before buying shares in TRON, you should consider the following:

The Motley Fool Stock Advisor team of analysts has just identified what they think is the 10 best stocks for investors to buy now… and TRON wasn’t one of them. The 10 stocks that made the cut could deliver monster returns in the years to come.

Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $758,227!*

Stock Advisor offers investors an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks each month. The Stock Advisor has service more than quadrupled the return of the S&P 500 since 2002*.

View the 10 stocks »

*Stock Advisor returns as of August 22, 2024

Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Chainlink, and Ethereum. The Motley Fool has a disclosure policy.

Why Altcoins Surged Double Digits This Week was originally published by The Motley Fool