Bitwise Analyst: Expectations of Further Fed Rate Cuts Will Positively Impact Bitcoin
On September 16, André Dragosch, head of European research at Bitwise, stated, "A relatively strong manufacturing report suggests that the market reaction to a 50-basis point rate cut by the Fed could be positive, as this leading indicator already shows that underlying economic momentum has even accelerated in September. This means we may be entering the early stages of a 'Goldilocks scenario' – low inflation, stable growth, and stimulative monetary policy.
I believe that in the coming months, the market will be driven more by expectations of rate cuts than the cuts themselves.
Due to the softening of the US economy and the looming recession, expectations of further rate cuts could intensify. We anticipate that this will have a net positive impact on Bitcoin and crypto assets." (The Block)