The post Fed Rate Cut Today? Experts Warn It May Worsen Crypto Market Bloodbath appeared on BitcoinEthereumNews.com.

Speculations around Federal Reserve’s potential rate cuts have intensified amid global economic turmoil. Today, the U.S. Fed has reportedly arranged an emergency meeting to decide on rate cuts. However, prominent financial figures warn that such a move could lead to severe repercussions. It could potentially cause further crypto market crash. Expert Warnings Against US Fed Rate Cut Scott Melker, also known as The Wolf Of All Streets, highlighted the potential downside of a Fed pivot. He stated, “The Fed pivot you’re all excited about is often bearish, especially when it’s a reaction to things breaking.” This suggests that Fed rate cuts, typically seen as a measure to stimulate the economy, might worsen the crypto crash. In a detailed analysis shared earlier, Melker explained that the common belief that a Fed pivot is beneficial for markets is “patently false.” He pointed out that historically, “after the Fed pivot to rate cuts, the market almost always crashes/corrects.” Furthermore, Melker’s analysis indicates that rate cuts often precede significant market dips. This could spell trouble for cryptocurrencies already facing intense downward pressure. Today, over $1.1 billion liquidations have been initiated in the crypto market. Moreover, nearly $1 billion liquidations are attributed to longs. This could have accelerated the latest downturn owing to fear, uncertainty, and doubt (FUD). Recently, Goldman Sachs also raised the probability of a U.S. recession in the next year from 15% to 25%. Bitcoin critic Peter Schiff also weighed in on the situation. He predicted that the Federal Reserve might cut rates mid-meeting to stabilize collapsing stock and labor markets. However, Schiff warned that such measures would fail to revive the economy or employment but could exacerbate inflation. Moreover, the economist hinted at a recession if a Fed rate cut is announced anytime soon. Additionally, Peter Kinsella of UBP says an…

---

Filed under: News - @ August 6, 2024 4:18 am