📉Powell hinted that two rate cuts still did not boost Bitcoin confidence. What is the market worried about? 📊
Hello everyone, today we are going to talk about Bitcoin and the Fed's rate cuts. I remember at the end of August, the Fed's boss Powell said that they might learn from the central banks in Europe, the United Kingdom, and Canada and cut interest rates. At that time, the price of Bitcoin was like a rocket, rising sharply.
However, the recent situation is a bit confusing. Powell spoke again and said that there might be two more rate cuts this year, each by 25 basis points. This sounds like a big positive for high-risk assets such as Bitcoin, but the price of Bitcoin did not rise, but fell instead.
On September 18, the Federal Reserve really cut interest rates, the first time since 2020, by 50 basis points. At that time, the price of Bitcoin also rose, from $59,000 to $66,500. But the good times didn't last long. Bitcoin started to fall in October, with a drop of more than 5% in the past 48 hours.
Yesterday, Powell mentioned the interest rate cut again in his speech in Nashville, Tennessee. Logically, this should be good news, but the price of Bitcoin did not rise, but fell to $62,500. As of the previous day, the price of Bitcoin remained around $6,1200.
🗣️Personal opinion:
In my opinion, this reaction of Bitcoin may be that the market's expectations of the Fed's policy have been digested in advance. After all, the market is always ahead of the news. In addition, as a high-risk asset, Bitcoin's price fluctuations are largely affected by investor sentiment and market expectations. Therefore, even with good news such as interest rate cuts, the decline in Bitcoin prices may be the result of the combined effect of multiple factors.
💼Conclusion:
In the world of investment, there are no permanent winners or losers. Every rise and fall of Bitcoin is the result of the interweaving of market sentiment and multiple factors. As investors, all we can do is stay calm, analyze rationally, and make the investment decision that best suits us.
💡What do you think? Is this wave of Bitcoin decline a temporary adjustment, or is the market worried about the future? Please leave your opinion in the comment section.
