Could the Fed's Surprise Move Hit Bitcoin? The Crypto Market is at Risk!

An analyst who stated that the FED may be stingy on interest rates warned cryptocurrency investors.

A portfolio manager, who warned that the US Federal Reserve may not make as big a rate cut as expected, stated that the market may have gone too far in this regard.

However, the cryptocurrency sector remains hopeful about the interest rate cut expected in September.

“Expecting a 100 basis point cut by the end of the year is a potential risk and this expectation may be a little too optimistic, there is nothing to support this thesis,” Justin Elliot, portfolio manager at Caldwell Investment Management, said in an interview with Bloomberg on August 14.

Doubts about Fed’s “aggressiveness”

Elliot said he thinks inflation will continue to trend in the right direction, but noted that the economy is performing “really well” and retail sales remain “strong,” warning that some market participants should not be overly confident that the economy will continue to slow.

“If you believe the economy is going to continue to soften and ease from here, we think even the new forecasts may be a bit too optimistic and we could see some forecast cuts as the year progresses.

Elliot also said that many Bitcoin investors believe that the rate cuts needed to break the current all-time high of $73,679 do not support the Fed’s expected “level of aggressiveness.”

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