The post Is Crypto Bull Run Imminent? What’s Next After the FED’s Interest Rate Cut? appeared first on Coinpedia Fintech News
The impact of the first United States interest rate cut in around four years is visible to the global market industry, led by stock indexes, precious metals, and crypto assets.
During the mid-London session, the crypto market cap gained nearly 2 percent in the past 24 hours to hover about 2.24 trillion on Thursday.
As crypto traders celebrated the Bitcoin price rally above $62k, Ethereum, Avalanche, and Solana prices led the altcoin in a bullish recovery.
As a result, the fear of further crypto capitulation has significantly decreased in the past 24 hours, with Bitcoin’s fear and greed index hovering around 49 percent, which signifies traders are neutral.
What Next for Bitcoin and the Crypto Industry
Cryptocurrencies are on an impressive upswing following a groundbreaking US Fed decision to cut interest rates for the first time since March 15th, 2020.The social expectations from the crowd will have a dramatic impact on where we go from here. With Bitcoin reaching as high… pic.twitter.com/AQbQpXqIYI
— Santiment (@santimentfeed) September 19, 2024
With the United States quantitative easing at hand, some Wall Street analysts have cautioned traders against expecting an immediate bullish continuation. According to Arthur Hayes, co-founder and CIO of BitMEX, the 50 bps Fed’s rate cut could be a ‘nuclear catastrophe’ for the financial market soon before the inevitable rally in the long haul.
Furthermore, Hayes believes the ongoing rate cuts in major economies point to a deep rot in the financial system. Every time the Fed initiated a quantitative easing cycle with 0.5 percent in the past two decades, the overall impact was a stock market retrace in the subsequent months before the long-term bullish rebound.
Jan 3, 2001: .5%Sept 18, 2007: .5%March 3, 2020: .5%Sept 18, 2024: .5%These are the last 3 times the FED has initiated its cutting cycle with .5%. $SPX #NASDAQ #FOMC #Recession #Economy $QQQ pic.twitter.com/GVwAIwOyLe
— Brett (@brett_eth) September 18, 2024
However, keeping a close watch on the ‘Uptober narrative’ in the Bitcoin price action is prudent, as it has yielded bullish outcomes in the past years for the subsequent months.
Mixed Reactions from Whale Investors
An #Ethereum ICO participant deposited 10,000 $ETH($24.37M) into #Kraken 15 minutes ago after being dormant for 2 years!The participant received 50,000 $ETH(ICO cost was $15.5K, now worth $121.85M) at #GENESIS.https://t.co/cuEosgIONq pic.twitter.com/PK4KePNFvu
— Lookonchain (@lookonchain) September 19, 2024
According to on-chain data analysis, whale investors have opted to cool down from the previous high accumulation rate. For instance, the demand for the US spot Bitcoin and Ethereum has significantly declined in recent times, which some whale investors, led by Ceffu, have been offloading in huge volume.
