🚨Bitcoin Price Alert: Economists Predict Coming “Dump News” Event!
The Federal Open Market Committee (FOMC) meeting is about to take place, which could have a significant impact on the future of Bitcoin and other digital assets.
Market participants are paying close attention to the FOMC meeting on September 18, speculating whether a more aggressive rate cut than expected will be adopted, that is, a direct cut of 50 basis points instead of the conventional 25 basis points.
The speculation quickly became a hot topic in the community, as the magnitude of the rate cut could have a significant impact on the price of risky assets such as Bitcoin.
Steve Hanke, an economist at Johns Hopkins University, said in an interview with reporters that if the FOMC really decides to cut interest rates by 25 basis points, this may not be good news for the market, but may trigger a "selling news" event.
He further explained that the market has already digested expectations of interest rate cuts in advance. If the FOMC really announces an interest rate cut, this expected result may disappoint investors, which may in turn trigger a decline in the prices of cryptocurrencies such as Bitcoin.
Hanke also pointed out that if the FOMC unexpectedly announces a 50 basis point interest rate cut, this unexpected move may bring an unexpected boost to the market, because the current market price has not fully priced in this possibility.
In short, with U.S. inflation gradually falling and Federal Reserve Chairman Jerome Powell hinting last month, the time may be ripe for a rate cut. Currently, the federal funds rate remains in a range of 5.25% to 5.50%, which is the highest level in the past 23 years.
At the same time, lower interest rates are theoretically beneficial for cryptocurrencies. Because lower interest rates mean lower returns on traditional savings and fixed-income investments, this may attract more investors to turn to cryptocurrencies such as Bitcoin.
However, given the complexity of the current market environment, it is challenging to accurately predict the market's reaction to a rate cut. After all, expected interest rate cuts were a big factor in Bitcoin's rally earlier this year, but the key question now is whether the market has fully priced in this expectation.
👇 Do you think the FOMC meeting will have an impact on the price of Bitcoin? Do you think the September FOMC meeting will cut by 25 basis points or more?
