Bitcoin May Face Selling Pressure If US Federal Reserve Cuts Interest Rates Due To Economic Growth Concerns

According to BlockBeats, Markus Thielen, founder of 10x Research, suggested on July 12 that a short-term advantage for Bitcoin could arise if the US Federal Reserve cuts interest rates in September 2024 due to inflation concerns. However, if the rate cut is due to worries about economic growth, whether in September or later, Bitcoin could face significant selling pressure.

In addition, strategists from the Wells Fargo Investment Research Institute pointed out that the arrival of the Federal Reserve's interest rate cut cycle often coincides with a significant drop in the stock market. Since 1974, the stock market has fallen by an average of about 20% within 250 days after the first rate cut by the Federal Reserve. This implies that cryptocurrency traders should be wary of signs of a weakening US economy.#BinanceSquareFamily #US_Job_Market_Slowdown #SOFR_Spike