Would a 50 basis point rate cut spark a Bitcoin bull run?
According to the CME Group’s FedWatch tool, the market currently sees a 59% chance of a half-point rate cut and a 41% chance of a quarter-point rate cut. The consensus is that the Fed could cut rates by 100 basis points by the end of 2024, with a nearly 60% chance of a 125 basis point cut.
This suggests that, starting with this week’s announcement, investors expect the Fed to make at least one or two significant rate cuts in the three remaining meetings of the year.
The cryptocurrency industry is still abuzz about the potential impact of a 50 basis point rate cut. Market expert Crypto Rover believes that a rate cut could reignite Bitcoin’s bull run and says that such a scenario could lead to a “super bullish” outlook.
Similarly, analyst Lark Davis recalled how Bitcoin has surged after past rate cuts and predicted that if history repeats itself, the market’s largest cryptocurrency could see a significant price increase in the next 6-12 months.
