QCP Answers: How Much Lower Will Bitcoin and Altcoins Go? All Eyes on the Fed
Fed policies will ultimately push the price of high-risk assets like Bitcoin higher, according to analysts at investment firm QCP.
Powell said at the Jackson Hole meeting that it was time to cut interest rates and that he was ready to cut rates to prevent the job market from cooling too much. Last week’s 800,000 job revision also increased this risk.
“We now believe that the Fed’s response is more focused on preventing a job market crash and that the likelihood of a 50 basis point rate cut in September is much lower,” the QCP report said.
The cryptocurrency market decline will be temporary
On the one hand, the markets are looking at Nvidia (NVDA). U.S. stocks have remained resilient and are approaching all-time highs.
“However, we remain cautious that US stocks could peak again here given the declining trading volumes and NVDA’s earnings release today,” QCP said. NVDA options are predicting a move of up to 10% tonight.
“We believe any declines in stocks and crypto will be short-lived,” QCP analysts said. “As Powell and the Fed prepare to begin a rate-cutting cycle, increased liquidity will eventually push riskier assets higher. "We are finally on the verge of a rate cut cycle," he commented.$BTC $ETH
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