cryptocurrency Spot market will be first in 2024 Bitcoin While focusing on ETF approvals, he focused on the FED’s first interest rate cut after approval.
At this point, with the FED starting to reduce interest rates BTC While an increase in cryptocurrencies is expected, May is pointed out for the first interest rate cut.
Because FED President Jerome Powell stated in his statements that it was “unlikely” for an interest rate cut to occur in March. Powell statement “We said we wanted to be more confident that inflation would fall to 2%. I think it is unlikely that this committee will reach that level of confidence until its March meeting, which is seven weeks away. However, we will not wait for inflation to reach 2% to reduce interest rates.” he said.
After these statements, new predictions for interest rate cuts began to be discussed. ETC Group Research Head André Dragosch said that market participants expect the FED to start its interest rate cut cycle in May, based on pricing for FED fund futures.
Speaking to The Block, André Dragosch added that the possibility of the FED starting to cut interest rates in March was priced in, adding that Bitcoin and the broader cryptocurrency market are waiting for the start of the FED’s expected interest rate cut cycle, that is, May, for the rise.
“We anticipate that Bitcoin and altcoins may experience an initial selloff in response to a potential delay in interest rate cuts through May.
“This price action could lead to lower global growth expectations amid a possible US recession.”
*This is not investment advice.
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