The U.S. Federal Reserve will hold a meeting on Tuesday and announce its interest rate decision in the early morning of 9/19 Taiwan time. Last week, the three major U.S. stock indexes all closed higher on expectations of interest rate cuts. The S&P 500 rose 4% for the week, and the Nasdaq index surged 5.9%, both recording their best weekly gains this year. Gold reached a new high last week, but can Bitcoin, known as digital gold, keep up with gold and catch up with this wave of capital market?
The Federal Reserve meets this week
The Federal Reserve will hold a meeting on the 17th and 18th and announce its interest rate decision in the early morning of 9/19 Taiwan time. The market has mixed views on whether to cut interest rates by one or two cents. "Wall Street Journal" reporter Nick Timiraos, known as the "Fed mouthpiece", revealed that recent data have provided mixed signals for the U.S. economy, and policymakers are evaluating one or two rate cuts. Investors are torn between numbers one and two, with the chance of a rate cut by number two currently at 52%, according to the CME FedWatch Index.
BTC once exceeded 60,000 magnesium, and ETH/BTC fell below 0.04
Bitcoin surged as high as $60,625 over the weekend, rising 7.4% in the past seven days. Bitcoin spot ETFs saw net inflows of up to $263 million on 9/13, led primarily by Fidelity’s FBTC (net inflow of $102 million) and Ark’s ARKB (net inflow of $99.3 million).
However, the trend of Ethereum is relatively weak, with the ETH/BTC exchange rate falling below 0.04, hitting a new low since April 20, 2021, and was trading at 0.03919 at the time of writing. The exchange rate reached an all-time high of 0.1238 in January 2018 and a low of 0.01615 in September 2019.
The interest rate cut train is about to start, gold hits new highs, can Bitcoin keep up?
At present, it seems that the start of this wave of interest rate cuts is just around the corner, but what assets will benefit?
Gold has once again hit record highs, helped by talk of interest rate cuts and a weaker dollar, with holdings in SPDR, the world's largest gold-listed exchange-traded fund, reaching their highest level since early January as money poured in. Analysts at Commerzbank said:
The market still expects the Federal Reserve to cut interest rates by 100 basis points before the end of the year, and gold prices may continue to rise on expectations of aggressive rate cuts in the coming months.
And can Bitcoin, known as digital gold, keep up with gold and hit a new all-time high? According to previous reports, analysts believe that the outcome of the U.S. presidential election will greatly affect the trend of Bitcoin. Standard Chartered expects that if Trump wins, the price will reach $125,000; if Harris is elected, it may reach $75,000. Bernstein believes that BTC could reach US$90,000 by the end of the year if Trump wins, but it will drop to US$30,000 if Harris wins.
(Standard Chartered: Bitcoin will reach a new high before the end of the year, no matter who is elected President of the United States)
(Bernstein predicts: BTC will be worth $90,000 by the end of the year if Trump wins, and it will drop to 30,000 if Harris wins)
This article The Federal Reserve is about to start a cycle of interest rate cuts this week. Is Bitcoin expected to follow gold to a new high? First appeared in Chain News ABMedia.
