EddieJayonCrypto
4 Jan 24
The release of the Fed's minutes from their December meeting indicated the likelihood of interest rate cuts in 2024, potentially impacting Bitcoin's bullish momentum. Historical data suggests that economic recession tends to follow the onset of Fed rate cuts, indicating potential market volatility a...
The release of the Fed's minutes from their December meeting indicated the likelihood of interest rate cuts in 2024, potentially impacting Bitcoin's bullish momentum. Historical data suggests that economic recession tends to follow the onset of Fed rate cuts, indicating potential market volatility and risk aversion. The long-awaited liquidity easing has been widely touted as a critical bullish tailwind for bitcoin (BTC) alongside the impending spot ETF launch and Bitcoin blockchain's quadrennial mining reward halving. There is a catch. Past data sourced from MacroMicro shows that the early stages of the supposedly stimulatory Fed rate cut cycle are often characterized by the economy on the brink of a recession and brief but notable rally in the U.S. dollar, a global reserve currency backed by the world's largest and most liquid government bond market. In other words, if history is a guide, bitcoin may see a brief and intense bout of risk aversion later this year after the Fed begins cutting the benchmark Federal Funds rate.
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