Fed’s lean toward September rate cut bullish for Bitcoin
The likelihood of the U.S. Federal Reserve cutting rates in September looks bullish for Bitcoin and crypto investors, QCP Capital analysts wrote in an Aug. 1 report.On July 31, minutes from the Federal Open Market Committee meeting revealed that Fed chair Jerome Powell and other officials at the American apex bank decided to leave interest rates unchanged.Powell and the Fed maintained tighter monetary policies for another month, keeping rates between 5-5.5% as the regulator held out for more positive economic data.According to QCP Capital, the FOMC minutes suggest that the Fed leans toward dovish policies as the year inches toward its final quarters. “A September cut has been fully priced in,” QCP analysts wrote in an Aug. 1 note.Jag Kooner, head of derivatives at Bitfinex, echoed QCP’s sentiment, adding that a September rate cut would bolster bullish momentum and improve market liquidity. Bitcoin (BTC) and other cryptocurrencies regarded as risk assets would benefit from more capital inflows as investors seek higher returns from outside the stock market. Kooner said: “There is a lot of confidence in the market at the moment, particularly as even potentially negative news like the Mt. Gox Distribution, German Government selling, and many recent significant Chain movements have not been able to impact the Bitcoin price to the downside substantially.”