FED Will Cut Interest Rates Today! How Will It Affect Bitcoin (BTC)?
There may be sharp movements in the cryptocurrency sector today.
The US Federal Reserve (FED) is expected to cut interest rates for the first time in four years today. This situation is leading investors to speculate about the score of the interest rate cut and its potential impact on risky assets, including Bitcoin.
According to the CME FedWatch tool, the probability of a 50 basis point cut has increased to 65% after the latest developments, and the probability of a 25 basis point rate cut has decreased to 35%. A few days ago, the market was giving two-thirds of a 25 basis point rate cut and one-third of a 50 basis point cut.
According to analysts, if the FED cuts interest rates by 50 basis points, the risk asset market, including the leading cryptocurrency Bitcoin, may react positively.
Bitwise European Research Head André Dragosch made the following statement on the subject in his latest statement:
“The recent relatively strong Empire State Manufacturing report suggests that the market reaction will probably be positive if the FED cuts interest rates by 50 basis points.
This leading indicator indicates that the fundamental economic momentum accelerated further in September and that a good period may begin for financial markets with low inflation, stable growth and encouraging monetary policy.
Richard Deitz, Economic Research Advisor at the New York FED, said, “Firms have become more optimistic that conditions will improve in the coming months, but capital spending plans were weak.”
The US Federal Reserve (FED) will announce its interest rate decision this evening at 21:00 GMT. Our readers should keep in mind that volatile movements may occur in the crypto market between 20:30 and 22:30.
