Bitcoin

The Federal Reserve faces a tough decision this week with the decision to <a href="https://www.reuters.com/markets/global-markets-fed-graphic-pix-2024-09-16/" rel="noopener noreferrer nofollow">cut</a> the interest rates. Market analysts suggest that the Fed’s possible cut in rates by 25 or 50 basis points will have a impact on assets like Bitcoin. This uncertainty has led to fluctuations in Bitcoin&#39;s price, which recently <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">dropped</a> from $60,000 to $58,700.Jim Reid from Deutsche Bank <a href="https://www.bloomberg.com/news/articles/2024-09-11/deutsche-s-holtze-jen-says-us-rate-repricing-to-fuel-volatility" rel="noopener noreferrer nofollow">suggests</a> that the size of this week&#39;s rate cut could indicate further reductions throughout the year. A 25 basis point cut could lead to a total of 75 basis points in cuts for 2024, while a 50 basis point cut could signal up to 100 basis points.Marc Chandler who is a strategist at Bannockburn Global Forex, noted that the market is currently balanced between expectations for a smaller or larger cut. This uncertainty has put a stop to Bitcoin&#39;s bullish run. Chandler also <a href="https://www.coindesk.com/markets/2024/09/16/bitcoin-slips-to-58k-as-fed-faces-split-rate-cut-expectations-as/" rel="noopener noreferrer nofollow">mentioned</a> that a larger cut might not favor risk assets. It could also imply deeper economic issues or discourage new investors  cryptocurrencies market..Interestingly, the Fed funds futures market shows a 50% chance for both potential rate cuts. This split expectation show the unfamiliarity of the situation affecting investment strategies, particularly in riskier assets or volatile markets such as cryptocurrencies.Analysts <a href="https://www.coindesk.com/markets/2024/09/09/a-050-fed-rate-cut-could-raise-alarm-for-bitcoin-10x-research-warns/?_gl&#61;1*qzg4fq*_up*MQ..*_ga*MTQyNzU5NTU1LjE3MjY0ODYxNzk.*_ga_VM3STRYVN8*MTcyNjQ4NjE3OS4xLjAuMTcyNjQ4NjE3OS4wLjAuMTM1Mjc1MzE1MA.." rel="noopener noreferrer nofollow">warn</a> that a 50 basis point cut might be seen as a sign of panic, which could also harm the demand for riskier assets such as Bitcoin. However, discussions about the size of the rate cut have progressed last week.<a href="https://cryptotale.org/feds-rate-cut-decision-creates-uncertainty-for-bitcoin/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Fed’s Rate Cut Decision Creates Uncertainty for Bitcoin

CryptoTale

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