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JPMorgan has forecasted a 50 basis point (bps) rate cut by the Federal Reserve in November. This prediction follows the Fed’s recent decision to lower rates by 50 bps, a move that has already had notable impacts on various sectors, including cryptocurrencies.The Fed’s Recent Rate CutThe Federal Reserve’s recent rate cut, which brought the federal funds rate down to a target range of 4.75%-5.00%, was larger than many analysts had anticipated. This decision marks the first rate reduction since March 2020 and is seen as a proactive measure to manage economic risks. <a href="https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/on-the-minds-of-investors/what-message-did-the-federal-reserve-deliver-with-its-50-bp-rate-cut/" rel="noopener noreferrer nofollow">Fed Chair Jerome Powell described the move as a “recalibration” of policy, aimed at addressing the current economic landscape</a>.The Fed’s statement highlighted several key points: job gains have slowed, inflation is moving towards the 2% target, and the risks to achieving the Fed’s dual mandate are balanced. Interestingly, the decision included a dissent from Governor Michelle Bowman, who preferred a smaller 25 bps cut.JPMorgan’s ForecastMichael Feroli, JPMorgan Securities’ chief US economist, has stated that he expects the Federal Reserve to implement another 50 bps rate cut in November. However, this forecast is contingent on the upcoming US employment reports. <a href="https://www.bloomberg.com/news/videos/2024-09-19/jpm-s-feroli-expects-another-50-bps-fed-cut-in-november-video" rel="noopener noreferrer nofollow">Feroli’s prediction aligns with the Fed’s updated economic projections, which suggest further rate cuts in the near future</a>.David Kelly, JPMorgan Asset Management’s chief global strategist, also supports the idea of a 50 bps rate cut, provided it is communicated as part of a broader policy normalization effort. Kelly emphasized the importance of managing market expectations to avoid stoking fears of a recession.Impact on CryptocurrenciesThe Fed’s recent rate cut has had a significant impact on the cryptocurrency market. <a href="https://cryptosnewss.com/bitcoin-bull-run-expert-insights-and-market-trends/" rel="noopener noreferrer nofollow">Bitcoin</a>, in particular, saw its price surge to over $63,000 following the announcement. Analysts believe that lower interest rates could benefit cryptocurrencies and other riskier assets, as investors seek higher returns in a low-rate environment.The broader cryptocurrency market also experienced gains, with major assets like Ethereum, Solana, and Cardano seeing price increases. However, some market watchers remain cautious, suggesting that the rally could be short-lived due to broader economic uncertainties.Market Reactions and Future OutlookThe Fed’s decision to cut rates has been met with mixed reactions. While some analysts view it as a necessary step to support economic growth, others are concerned about the potential long-term effects on inflation and market stability. The Fed’s willingness to take risks with inflation could drive investors towards store-of-value assets like gold and Bitcoin.The post<a href="https://cryptosnewss.com/jpmorgan-predicts-massive-rate-cut-bitcoin-set-to-skyrocket/" rel="noopener noreferrer nofollow"> JPMorgan Predicts Massive Rate Cut: Bitcoin Set to Skyrocket? </a>appeared first on <a href="https://cryptosnewss.com/" rel="noopener noreferrer nofollow">Cryptos Newss</a>.

JPMorgan Predicts Massive Rate Cut: Bitcoin Set to Skyrocket?

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