10x Research Warns: 50bps Fed Rate Cut Could Hurt Risk Assets, Including Crypto

火星財經 reported on September 14th, citing Coindesk, that 10x Research believes a 50 basis point (bps) rate cut by the Federal Reserve on September 18th could negatively impact risk assets, including cryptocurrencies, despite the bullish sentiment surrounding easing liquidity. A 50 bps adjustment typically indicates a heightened urgency to control inflation and can trigger risk aversion in financial markets.

A 50 bps rate cut next week could signal intensified concerns about the economy or a sense of being behind in tackling the impending economic slowdown, leading investors to reduce their exposure to risk assets like Bitcoin (BTC) and stocks.

Markus Thielen, founder of 10x Research, stated, "While a 50 bps Fed rate cut could suggest more market anxiety, the Fed's main focus will be to mitigate economic risks, not manage market reactions."