Experts Expect the FED to Start Interest Rate Cuts in 2024! How Will Bitcoin Price Be Affected?

According to Coindesk news, experts FED’He expects China to cut interest rates by 100 basis points next year and display the most dovish stance among some central banks.

Deutsche Bank While stating that the FED will be the central bank with the most dovish attitude in 2024, he said that a research they conducted revealed that investors expect an interest rate cut of at least 100 basis points (that is, 1 percentage point) from the current range of 5.25% to 5.5%.

ING Bank Analysts also said that they expect the US economy and inflation to slow down in 2024 and the FED to follow a looser monetary policy.

Finally Bank of America Analysts said in a recent report that the current trend is in favor of the dollar, but this situation may change in 2024.

“We predict that the US economy will perform relatively well compared to other major economies next year.

At this point, although the current trend is in favor of the dollar, we think that the dollar may start to decline in general in 2024.”

If banks’ expectations about the FED’s interest rate cuts and the dollar in 2024 come true, this will put pressure on the dollar and a weaker dollar will generally Bitcoin And cryptocurrency It is interpreted positively in the market.

Because Bitcoin reached its peak of $ 69,000 in November 2021, when the FED started increasing interest rates. Since the bear market that followed was directly related to the FED’s interest rate increases, it would be the result of a policy change and the start of interest rate reductions. BTCIt is thought that it may return to its old days again.

When the dollar, a global reserve currency, strengthens, it causes financial tightening around the world and discourages risk-taking. When you lose weight, the opposite happens. At this point, the weakening dollar encourages investors to take risks in risky assets, including Bitcoin.

*This is not investment advice.