Goldman Sachs Economists Updated Their 2024 Interest Rate Cut Expectations: Pointed to This Month for the First Rate Cut! How Is Bitcoin Price Affected?

FED’While it remains a matter of debate when Turkey will start reducing interest rates, there are many different opinions on this issue.

While the FED signals in its statements that March may be improbable for the first interest rate cut, all eyes are on May for the rate cut. Goldman Sachs thinks differently.

At this point, Goldman Sachs economists in a recent report He said that they expect there will be four interest rate cuts in the USA in 2024 and that the first one will come in June.

Goldman Sachs economists recently updated their forecasts for when the Fed will cut interest rates.

Economists, who expected five interest rate cuts in 2024 in their initial forecasts, stated that they expect the first interest rate cut to be made in June.

Economists think that although the latest inflation data for January is higher than expected, this should not be taken into consideration too much. Economists stated that they predicted that core inflation would fall to 2.5% by the May FOMC meeting and to 2.2% in June.

At this point, Goldman Sachs economists make their latest predictions: “We foresee interest rate cuts in June, July, September and December 2024, and four more rate cuts in 2025.” said.

According to CME Group’s FED Watch tool, the probability of keeping interest rates constant in May is priced at 76%, while the probability of a 25 basis point cut is priced at 23%.

On the other hand, the probability of the FED keeping interest rates constant in June is priced at 32%, while the probability of a 25 basis point cut is priced at 53.7%.

As you may remember, the FED kept its interest rate decision unchanged in January, in line with expectations, and kept interest rates constant in the range of 5.25-5.50 percent.

As the FED started to cut interest rates Bitcoin (BTC) and a rise in cryptocurrencies is expected. For Bitcoin It hit its peak of $69,000 in November 2021, when the FED started increasing interest rates. Since the subsequent bear market is directly related to the FED’s interest rate increases, it will be accompanied by a policy change and interest rate reductions. BTCIt is thought that it may return to its old days again.

At this point, experts expect the BTC price to experience tremendous increases if interest rate cuts come immediately after the Bitcoin Halving.

Experts said they predict that interest rate cuts after April will push the BTC price to a new high, as the halving is expected to push the Bitcoin price above its all-time high of $69,000.

*This is not investment advice.