FED set to cut rates tomorrow, will that be a catalyst for Bitcoin?
The FED is set to cut rates tomorrow, will that be a catalyst for bitcoin?
The FED will host its next policy meeting tomorrow, and the rumor is that they will announce their second consecutive rate cut.
This rate cut is a big deal because we hadn't seen rate cuts in roughly a decade before the most recent one.
The odds for a rate cut look something like this currently:
(Source: https://www.ccn.com/fed-meeting-bitcoin-price-analysis/)
The stock market has also been pricing in a rate cut as markets have been inching up much of the past few weeks.
The S&P 500 is only a few points off the all time highs.
What will this mean for bitcoin?
If a rate cut were to happen, it would be bullish for bitcoin, at least in theory.
It would indicate a willingness of the FED to be accommodative of markets and risky assets, even if they won't admit as much.
In general, an interest rate cut reduces the incentive to hold fiat currency. Rate cuts typically lead to higher inflation, which reduces the purchasing power of traditional currencies, which means bitcoin becomes attractive again.
We didn't see much reaction during the last rate cut for bitcoin, but with the charts and technicals reset it looks like we are all set up for a big move, we just need a catalyst.
Whether it will be the announcement of a rate tomorrow or Bakkt launching in a few weeks, we are likely to see a big move before the end of the month.
Stay informed my friends.
-Doc
Lol I love how they try to keep us down but destroying their own system at the same time
I think that the negative interest rates in many countries, coupled with institutional money from bakkt and hopefully a fully operational lightning network on BTC and sharding on ETH to help get all this value in and move it into the various alts is going to be interesting time for crypto
I don’t think the next run will be as quick and crazy as the last one but I’ll be steady growth to new heights but right now as early adopters we need to get our stakes up
I wonder which Alts will be the big gainers in the next run
I hear Cardano will be launching Shelley soon
Hopefully with some development and hype, steem might be one?
Let’s get to 0 interest rates 😭😂
You mean like we were from 2009 to 2016? :D
We got another 2-3 more trillion to print baby!! 😂🤣🤣
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Might be a good time to do some re-financing when we get back down there again. :)
let's get to negative rates!
Good times!! Free money and get paid haha
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That is most likely where the trend is going!
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then let's get negative! ✂️ 😂
Yep, pretty much. That is why bitcoin is going to have such a tough time if it tries to just take it head on.
after reading your post. i have prepared a new post in response to it. If FED to Cut Rates Today; it will Hedge Value for Bitcoin? please refer to my latest post if you want see the way justified it.
thanks@jrcornel
Link it.
,
Well I remember reading that the natural life span of a fiat currency was around 27 years and the current iteration of the USD is over 40 years so it's days are counted.
Where do you come up with that 40 year number? From when the US went completely off the gold standard?
Correct :-)
bitcoin will be finding its way out to the top
I am think that is the most likely scenario as well.
I think the so called "money printing by FED" will have a solid impact on the value of USD, hence it will have an indirect impact on the prices of cryptocurrencies. But, we will see the impact/ result of this insane "money printing by FED" in the long run, not in the near future. That's why I think if FED cut the rates today, it won't impact the price of Bitcoin immediately.
Yep, I agree. Well said.
The rates are still decreasing but it doesn't look it has an impact n the BTC, at least a positive impact