Bitcoin is up 6% since the Fed rate cut. What’s next?
The post Bitcoin is up 6% since the Fed rate cut. What’s next? appeared on BitcoinEthereumNews.com.
Bitcoin has risen roughly 6% since the Federal Reserve revealed its first interest rate reduction in more than four years. Industry watchers say that while the rate cut has so far proved to be a short-term catalyst for crypto, the longer-term economic outlook remains uncertain. Bitcoin stood at roughly $63,600 at 2 pm ET Thursday — up from $60,000 24 hours prior. Read more: Powell pitches 50 bps rate cut to support ‘strength of the economy and the labor market’ Lower interest rates generally drive more investment into riskier assets like crypto, due in part to the diminished returns from traditional investment vehicles, noted Bybit institutional head Chris Aruliah. “However, the broader global economic slowdown stipulated by softer economic indicators and geopolitical complexities is tempering investor sentiment,” he said in a statement. While the rate cut offered a “short-term boost” to crypto markets, Aruliah added, “it is crucial to remain vigilant regarding the potential challenges posed by economic uncertainty and market fluctuations.” Ruslan Lienkha, chief of markets at YouHodler, offered a similar warning. The cut is favorable for equity markets and offers a “risk-on signal” for traders in the short term, he explained. It could even push BTC closer to its all-time high (above $73,000, reached in March). But the move, as some indicated prior, could be seen as an “emergency measure” that suggests the Fed “misjudged the optimal timing for easing,” Lienkha added. “Over the next three months, it will become clearer whether the Fed can guide the economy toward a soft landing and avoid a recession in this cycle.” Wednesday’s cut was likely just the first of several expected rate reductions in the coming months. Fed Chair Jerome Powell said at yesterday’s press conference that the Fed is “not on any pre-set course,” adding that rate decisions would…
Filed under: News - @ September 19, 2024 8:21 pm