Bitcoin and Interest Rates Inverse Correlation

- According to a Fidelity Active Investor Learning Center report, the US Federal Reserve has been observed to indirectly affect crypto prices.

- According to the SPGlobal report, there has been a 63% inverse correlation between interest rates and the crypto index since May 2017, and a 75% inverse correlation since May 2020.

Central Banks Prepare for Interest Rate Cuts

- China, Canada, and South Africa plan to cut interest rates.

- Bank of Canada Governor Tiff Macklem said they are ready for larger interest rate cuts.

- The South African Reserve Bank is expected to announce a rate cut this week.

Soft Landing, Hard Rise for Bitcoin

- As the Fed and other central banks prepare the economy for a soft landing, Bitcoin and other cryptos are responding with optimism.

- BitMEX founder Arthur Hayes predicts that new interest rate cuts will rapidly increase the BTC price.

“They will dramatically increase the money supply, which will create a huge opportunity for limited-supply assets like Bitcoin,” Hayes said. 🚀