Fed Rate Cuts: History Shows Mixed Market Reactions, Not Always a Crash đ„
The recent 50 basis point (bps) rate #cut by the Federal Reserve has sparked concerns about a potential market crash, particularly in stocks and crypto.
While many believe that large rate cuts often lead to #recessions , historical data shows otherwise. In 1984 and 1987, similar cuts led to market pumps, while in 2001 and 2007, they resulted in market dumps.
The likelihood of a recession now is low, given strong #GDP , falling inflation, and rising global liquidity. A crypto bull run could precede the next recession, with Bitcoin potentially reaching $150,000 and altcoins surging 20x to 100x.
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