Unexpected bad news! Fed's Bowman "hawkish", zero interest rate cut in 2024, how will Bitcoin go?
Fed Governor Bowman said in a speech in London today that there are currently multiple upward risks to inflation, and the high interest rate environment needs to be maintained for some time. He believes that there will be no interest rate cut in 2024, and the Fed should postpone the interest rate cut to 2025.
Bitcoin has been so weak in recent days, and the "hawkish" voice has been released, which is really adding insult to injury. There are no important economic data released this week, mainly speeches by Fed officials. The current view of this one is to postpone the interest rate cut, and the attitudes of several other officials can be observed.
The Fed is best at "expectation management". Whenever you think the probability of a rate cut is increasing, a speech will give you a "hit on the head". But when you are pessimistic and think that the rate cut is really going to be postponed, you will often come out to praise the successful suppression of inflation. Then, both the stock market and cryptocurrency will fluctuate greatly accordingly.
As for Bitcoin, it is indeed in a weak state now. I have sorted out the negative news for you. One is the concern about the Mentougou incident, but the selling pressure is overly worried. The other is the lack of liquidity. There is no new capital entering the market. The Bitcoin ETF has also had a net outflow for more than a week. I think the latter is the root cause of the recent weakness.
In fact, we can still look forward to the entry of new funds. In early July, it was rumored that the Ethereum ETF will be approved, and institutional funds will definitely "buy, buy, buy" at that time.
Well, in short, the opportunities are greater than the risks at present. Don't be thrown off the car. Hold on to your chips, especially Bitcoin, Ethereum and platform coins.
