Arthur Hayes notes Bitcoin’s 10% drop since Powell’s speech, driven by shifts in market liquidity and RRP yields.
BitElite warns of potential downside risks for altcoins, comparing the current ALT/BTC pair to the 2019 rate cut cycle.
Henrik Zeberg signals caution as economic indicators suggest rate cuts may arrive too late to prevent a recession.
Following Federal Reserve Chairman Jerome Powell’s recent comments about potential rate cuts at Jackson Hole, markets have reacted differently than anticipated. Prominent voices in the financial world, including former BitMEX CEO Arthur Hayes, are highlighting key factors driving this unusual response.
Hayes noted in a recent social media post that Bitcoin has dropped 10% since Powell’s announcement. He suggests this decline could be linked to shifts in market liquidity, specifically surrounding the Federal Reserve’s Reverse Repo Program (RRP).
My theory on why Fed rate cuts aren't going to plan.
Since JAYPOW annc Sept rate cut at J-Hole, $BTC down 10%, y? I thot rate cuts were good for risk assets.
RRP pays 5.3% no T-bill under 1-yr maturity pays more. MMF will move money from T-bill -> RRP which is $ liq -ve.
Sinc…
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