Goldman Economist Eyes 0.25 Fed Cut: Will Bitcoin Catch The Wave? #Goldman

Goldman Sachs’ chief economist expects a 25- to 50-basis-point Fed rate cut. Will that kickstart the next Bitcoin rally?
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Over the past month or so, Bitcoin has fallen while the Nasdaq and S&P 500 have gained. Will the bulls be back after the spigots turn up the overnight cash markets?
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Bitcoin is down by 6% over the 30 days ending Friday, Sept. 13, while the Nasdaq Composite is up 3.7% for the month’s trades and the benchmark S&P 500 Index is up 4% over the same period.
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So what gives with Bitcoin? #btcupdates2024

Is Wall Street putting bearish selling pressure on crypto prices with outflows from the Bitcoin ETFs and going shopping with the money for NVDA, TSMC, and ASML to just bet on the chips and let Reddit users figure the rest out?

Are Bitcoin miners selling to keep up with rising industrial electricity costs since April?

Goldman Sachs Economist: 25 – 50 Basis Pt Cut

“I wouldn’t rule out 50 basis points, but 25 basis points strikes me as more likely,” said Goldman Sachs chief economist Jan Hatzius on Monday.” “I think there is a solid rationale for doing [a 50 basis point cut]. And the rationale is that five and three-eighths, five and a quarter to 5.5% is a really high fed funds rate. It’s the highest policy rate in the G10.”

Hatzius added the US has seen more progress on inflation than most of the G10.

Will Bitcoin’s Price Go Up When The Fed Cuts Rates?

Past results don’t guarantee future performance, but history does tend to repeat and winners tend to win again. The US benchmark interest rate is a macro tide that raises big boats like hot Wall Street stocks and Bitcoin’s decentralized Internet economy

Past low-rate macro environments have correlated with massive Bitcoin gains. The period of most stellar ROIs for BTC holders was during the 2010s when rates were low before the line for BTC begins on the graph

When rates dropped to zero in 2020, Bitcoin’s price surged nearly 8x to record highs

#Raoul Pal, the creator of Real Vision, claims that after dramatically increasing his stake size during the down #market, he is still enthusiastic on digital assets.

The former #Goldman Sachs executive provides a portfolio update in a new Bankless interview, revealing that he continues to have a sizable investment in one of #Ethereum's ($ETH ) main competitors.

- #Goldman Sachs economists predict that the Federal Reserve will start lowering interest rates by the end of Q2 2024.

- The rate cuts will be gradual and occur quarterly.

- The primary reason for the rate cuts is to normalize the funds rate as inflation gets closer to the target.

- The Goldman #team anticipates rate cuts to begin in Q2 2024, and they expect the Federal Open Market Committee (FOMC) to skip a rate #hike next month.

- The recent #US inflation data shows a slower-than-expected increase, with a headline rate of 3.2% and a core consumer price index of 4.7%.

- The Goldman #economists project that the funds rate will eventually stabilize around 3-3.25%.

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Former #Goldman Sachs executive Raoul Pal has a theory about the entities that could have created Bitcoin ( #BTC ). In a new interview with #YouTuber Tom Bilyeu, the Real Vision CEO says he thinks Satoshi, the anonymous inventor of #Bitcoin, might be the US and the UK governments.

Real Vision CEO Raoul Pal is predicting a break out for #Ethereum (#ETH ) and new 2023 highs for the broader crypto market. The former #Goldman Sachs executive tells his 996,600 Twitter followers that what he calls the "Exponential Age" has ignited the start of a #bull cycle for digital assets.