🚨🚨💰 Crypto on the Edge: Fed’s 50 bps Cut Speculation! 🧐
🚀 Market Musings-G 🚀
Fed Rate Cut Speculation 💰
A massive rate cut by the Federal Reserve could be a game-changer for crypto markets, suggests Joe McCann, CEO of Asymmetric. The U.S. central bank is expected to cut rates from the current 5.5% on Sept. 18. It’s a “coin flip” between a 25 or 50 basis point cut, but the CME Fed Watch tool shows a 65% chance of a 50 bps cut, influenced by media coverage and statements from former Fed governors.
50 bps Cut = Crypto Boost? 🚀
McCann believes a 50 bps cut could be positive for risk assets like crypto. If the Fed goes for the smaller 25 bps cut, it might be bad news for the markets, as equities are at all-time highs banking on a bigger cut.
Market Already Priced In? 📉
Saad Ahmed from Gemini hints that the markets might have already priced in the rate cut, but a 50 bps cut could trigger a breakout, putting “risk-on” back in play.
Debunking the Bearish Notion 🐂
Contrary to the idea that a 50 bps cut would be bearish, McCann notes that past rate cuts were during crisis times like 2008 and the dot-com bubble. The current economy, with a 3% GDP growth, is more stable, aiming to stimulate growth into 2025 and reduce net interest payments for the U.S. Treasury.
The Uncertainty Factor 🤔
The market is on edge with uncertainty about the Fed’s decision—something not seen in 15 years, according to The Kobeissi Letter.
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