As we enter Q4 every dip you see is only temporary, every resistance you see will be broken. Why? Feds will cut rate and here's how it'll affect the market? Here's a quick breakdown đ
The recent revision to job data, indicated a loss of 800,000 jobs. What do the Feds plan to do?
Jerome Powell's declared that it's time for the Federal Reserve to ease interest rates. This is a game-changer because lower interest rates mean more money in circulation.
â The Bullish impact of Fed Rate cut for Crypto and Stocks
Given the potential for increased liquidity and reduced borrowing costs, a Fed rate cut is generally seen as bullish for both crypto and equity markets.
> Crypto:
BTC and other crypto assets often benefit from a more favorable macroeconomic environment. Lower interest rates can increase investor appetite for riskier assets like crypto.
Additionally, a rate cut will boost the demand for BTC (either Spot or ETF) as a potential hedge against inflation.
> Equities:
Stocks are also likely to see a positive impact from a rate cut. Lower borrowing costs can improve corporate profitability and increase investor confidence, leading to higher stock prices.
â How Many Fed Rate cut in Q4?
According to the CME FedWatch Tool, a 0.25% interest rate cut is highly likely at the September FOMC meeting.
Furthermore, a notable majority of traders anticipate additional rate cuts in November and December.
âïž Conclusion
Despite these short-term factors, the long-term trend for both crypto and stock markets remains bullish. The Federal Reserve's potential rate cut, coupled with the positive market sentiment and the potential for increased economic activity, suggests a favorable outlook for the fourth quarter.
