Will the Fed’s Expected Rate Cut Matter Much for Bitcoin?
As the market reacts to potential changes in U.S. monetary policy, there is uncertainty regarding how the Federal Reserve's expected rate cut will affect Bitcoin. Bitcoin recently surged to an all-time high of over $75,560 amid speculation about Republican electoral gains. David Lawant from FalconX suggests that the Fed's decision on interest rates may have little influence on Bitcoin prices, citing larger uncertainties tied to Trump's presidency. Conversely, Pav Hundal from Swyftx argues that lower interest rates could drive investors towards riskier assets like Bitcoin, thus potentially leading to a six-figure price for Bitcoin by the end of the year. Lower borrowing costs typically spur consumer spending and decrease the appeal of safer investments, prompting a shift towards higher-risk investments. This dynamic could lead to increased demand and valuations for both stocks and Bitcoin as the market seeks growth opportunities in a low-rate environment.
Source 🔗