The Fed May Cut Rates by 50 Basis Points, Creating Challenges for the Cryptocurrency Market
Publication Time:2024-09-09 19:31:08
Recently, 10x Research released a report indicating that if the Fed decides to cut rates by 50 basis points on September 18th, it may signify deep concerns about the current economic environment rather than an active effort to boost the market. Market participants currently estimate less than a 30% probability of a 50-basis-point rate cut next week, further highlighting the uncertainty surrounding economic prospects. Research data reveals that this anticipated shift in liquidity easing cycles could have an adverse impact on the cryptocurrency market. If the Fed takes such action, it may indicate heightened concern over economic slowdowns or a relatively lagging response to potential economic recessions, prompting investors to reassess risk assets, including Bitcoin and stocks. Therefore, for the cryptocurrency market, this potential rate cut could present new challenges, leading investors to adjust their strategies and reduce allocations to high-risk assets like Bitcoin.
Bitcoin
Fed
rate cut
Risk Assets
Cryptocurrencies