🌪️ The FOMC meeting is coming, the extent of the interest rate cut is a mystery, and the Bitcoin market trend is a mystery!
The FOMC meeting is about to be held on Wednesday, and the market is generally expecting an interest rate cut. Currently, forecasts for the extent of interest rate cuts present a 50-50 split, that is, the likelihood of a 25 basis point interest rate cut is almost equal to that of a 50 basis point interest rate cut.
This change in expectations is mainly due to the strong labor data released last week, which has led more people to believe that the U.S. economy may need a larger interest rate cut, not just 25 basis points.
At the end of last week, the market expected that the probability of a 25 basis point interest rate cut was basically the same. However, a month ago, these two figures were 75% and 25% respectively.
But now, as market expectations change, the chances of a 50 basis point interest rate cut and a 25 basis point interest rate cut are 59% and 41% respectively, which also shows the general uncertainty in the market.
However, this raises a question, that is, for the cryptocurrency market, will the extent of interest rate cuts really have a significant impact on the price of Bitcoin?
🗣 Opinion:
Some analysts said that before the results of the FOMC meeting are announced, market uncertainty may cause the price of Bitcoin to fall first and then rise.
They believe that because investors are usually sensitive to such news and prefer clarity, the market may be inclined to fall before the decision to cut interest rates is announced.
However, once the FOMC announces an interest rate cut on Wednesday, the Bitcoin market is likely to see gains, as a clear decision will provide market participants with the clear signal they need, prompting them to take more directional actions.
This expectation also reflects investors' cautious attitude before major events.
💬 So, what do you think? How much do you think it will drop this time? Will Bitcoin rise or fall after interest rate cuts? Come to the comment area to chat about your views!
