The negative impact of the Fed's rate cuts on the crypto market against the backdrop of a weak economy cannot be ignored
"If the Fed cuts rates in September 2024 simply because of inflation concerns, this may be a short-term positive for Bitcoin. However, if the rate cut is caused by economic growth concerns, whether in September or later, Bitcoin may face huge selling pressure."
In addition, Wells Fargo Investment Institute strategists said that the arrival of the Fed's rate cut cycle often coincides with a sharp drop in the stock market. Since 1974, within 250 days of the Fed's first rate cut, the stock market has fallen by an average of about 20%. "This means that cryptocurrency traders should be alert to signs of a weak US economy.
