The potential of Fed rate cuts in 2024:
Investors are eagerly awaiting the forthcoming Federal Reserve rate announcement, with a keen focus on the nuances within Fed Chair Jerome Powell's post-announcement press conference. The anticipation centers around any signals regarding potential rate cuts in 2024.
Bitfinex analysts have highlighted indicators suggesting that the market foresees the U.S. central bank initiating rate cuts in the spring of 2024. According to the analysts, "The anticipation of such a pause has already influenced bond yields and trader expectations, with rate cuts being priced in starting from May 2024."
The analysts further assert that the current market dynamics and the strategic positioning of long-term holders, anticipating a sustained increase in prices, are influenced by this expectation. They posit that if this shift in monetary policy transpires, it could foster a more conducive environment for investment in risk assets, including cryptocurrencies.
