Warning of market volatility in September and October? How can Bitcoin investors seize the opportunity of interest rate cuts?
As September draws to a close, everyone in the financial market is watching several things in the United States, especially those that may affect the wallets of our cryptocurrency investors.
Bitcoin performed well at the beginning of this week, hovering around $63,000. Let's see if this week's data can stabilize it.
First, the health of the manufacturing and service industries will be reported on Monday, called PMI. This number above 50 means that these two industries are expanding, which is a good sign for those of us who invest in risky assets, especially if the economy is still growing.
Next, how are consumers feeling? There are reports for two consecutive days. One is about consumer confidence on Tuesday, and the other is about consumer sentiment on Friday. Both ask everyone whether they are optimistic about the future of the economy. If everyone is optimistic, they will spend money generously, which is also a good thing for a slightly stimulating investment like Bitcoin, because everyone dares to take risks.
Then, there is a big event on Thursday, the revised GDP report for the second quarter is released. If this number is good, it means that the economy is strong, everyone will be stable, and it will be good for the price of Bitcoin. Moreover, if the economy is good, the Fed may not be so anxious to raise interest rates, which is good for market liquidity and good news for cryptocurrencies.
The Fed is also busy this week, especially Chairman Powell will speak on Thursday. What he says will determine the market. There is also a director named Bowman, who has different opinions from others, and you have to listen carefully to her words to see if you can hear any new information.
There will also be a PCE inflation report on Friday. If this number is lower than expected, the Fed may continue to cut interest rates. With lower interest rates, it will be easier for everyone to borrow money, and there will be more money in the market, which will make high-risk investments such as Bitcoin more attractive.
The market is still fluctuating now, but the general trend of interest rate cuts has begun. However, how and how fast the Fed cuts depends on the situation. In the short term, September and October may still be shaky; but in the long term, as long as the loose policy continues, high-risk and high-return investments such as Bitcoin will still have opportunities.
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