TechFlow reported that Joe McCann, founder and CEO of crypto hedge fund Asymmetric, said that the Fed's sharp interest rate cut will be beneficial to risky assets and the cryptocurrency market, rather than negative as some people believe. The Fed is expected to cut interest rates for the first time since March 2020 at 2 a.m. Beijing time on September 19, with the current interest rate at a 24-year high of 5.5%.
McCann sees a 50/50 chance of a 25 or 50 basis point rate cut. The CME Fed Watch tool shows a 65% chance of a 50 basis point cut and a 35% chance of a 25 basis point cut.
McCann pointed out that if the Fed only cuts interest rates by 25 basis points, the stock market may be hit hard and the cryptocurrency market may fall accordingly. But a 50 basis point rate cut may be beneficial to risky assets such as cryptocurrencies.
Saad Ahmed, head of Asia Pacific for cryptocurrency exchange Gemini, believes that the market may have already digested the expectation of rate cuts, but rate cuts may still trigger a breakthrough. McCann also refuted the common view that a 50 basis point rate cut would be bearish, pointing out that the current economic situation is different from the past period of emergency rate cuts and is more stable.