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10x Research: A 50 basis point rate cut next week may trigger risk aversion in the market and put pressure on the rise of risky assets

On September 14, Coindesk reported that 10x Research believes that if the Fed cuts interest rates by 50 basis points (bps) on September 18, the originally bullish liquidity easing cycle may have an adverse impact on risky assets including cryptocurrencies.

It is reported that a 50 basis point adjustment usually indicates the urgency of controlling inflation and triggers risk aversion in financial markets. A 50 basis point rate cut next week may mean increased concerns about the economy or a sense of lagging behind in responding to the impending economic slowdown, causing investors to reduce their exposure to risky assets such as Bitcoin (BTC) and stocks.

Markus Thielen, founder of 10x Research, said: "Although a 50 basis point rate cut by the Fed may mean greater market concerns, the Fed's main focus will be on alleviating economic risks rather than managing market reactions."