Hello!
The FED is going to meet this week and all the investors are thinking about a possible rate cut. In fact, the consensus is that it could be 25 bps or 50 bps with both at approximately 50% chance.
I don’t know how the markets will react to the rate cut, I assume that it’s already priced in and there would be volatility if the rate cuts are high (50 basis points). I would not move any of my crypto positions.
If I have to bet, I would say that lowering interest rates is positive for crypto and commodities. The fact that the FED is cutting rates could mean that the economy is not running hot, however, the positive part is that they will be able to print at a cheaper rate. And you know, the more they print, the more hard assets appreciate.
And Bitcoin is the hardest asset on earth. Their capped supply at 21 million is a blessing in periods with low interest rates.
The message they sent is very important, it can mark a shift in the high interest rates and a move towards a lower rate environment.
Don’t take my words as financial advice, I don’t know what will happen and I’m not an expert at all about interest rates effects. I’m just a normal guy, willing to bet my life savings into this new system. It’s unstoppable.
Take care out there!
Posted Using InLeo Alpha
Indeed, lowering interest rate is a good thing for us. If it all goes well, October might just be a good month for crypto.