Usually interest rate cuts by the US Federal Reserve (Fed) are reflected in the cryptocurrency market. A rate cut reduces returns on traditional assets and encourages investors to choose riskier assets over traditional ones. The FedWatch tool offers two options that should be analyzed separately, as the market is likely to move differently in each situation.
First, let's look at what can happen if the rate cut is 50 BPS. This scenario is extremely favorable for the #cryptocurrency market, as it could give it a strong bullish momentum.
Next, let's look at what could happen if the rate cut remains at 25 BPS. While this is also a favorable scenario, investors may act a bit more cautiously in this situation than in the first case. In other words, it may not push the cryptocurrency market to surge.
In conclusion, the upcoming FOMC meeting may affect the #bitcoin market trend. A rate cut could be the impetus that the cryptocurrency market needs if it hopes to meet Q4 expectations.
See also: This altcoin could rise 80% in Q4 - Is it time to buy?
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