Unlock the Secrets of Ethical Hacking!
Ready to dive into the world of offensive security? This course gives you the Black Hat hacker’s perspective, teaching you attack techniques to defend against malicious activity. Learn to hack Android and Windows systems, create undetectable malware and ransomware, and even master spoofing techniques. Start your first hack in just one hour!
Enroll now and gain industry-standard knowledge: Enroll Now!
The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.
Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction.
“The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”
Most traders and financial institutions expect at least two interest rate cuts in 2025, including investment banking firm Goldman Sachs and banking giant Citigroup, which both expect three cuts during the year.
Oxford Economics, an advisory firm, forecasted a maximum of two interest rate cuts in 2025. Ryan Sweet, the chief US economist at the firm, said the three cuts were “overly optimistic,” despite the Federal Reserve slashing rates earlier than expected.
The crypto community and investors across markets have been anticipating interest rate cuts following downward revisions of over 900,000 jobs for 2025, signaling a weakening job market in the US and deteriorating macroeconomic fundamentals.
Related: Crypto markets prepare for Fed rate cut amid governor shakeup
A 25 BPS cut may create a short-term rally, but 50 BPS is a bridge too far
According to the Chicago Mercantile Exchange (CME) Group, 6.2% of traders expect the Federal Reserve to slash interest rates by 50 BPS on Wednesday.
A 25 BPS cut would spark a “brief rally” in risk-on assets, Javier Rodriguez-Alarcon, chief investment officer at digital asset investment firm XBTO, said.
“A 50 bps surprise, by contrast, would heighten concerns over the health of the economy and underlying growth, weighing on markets in the short term, Rodriguez-Alarcon added.
However, the cuts will ultimately boost asset prices in the long term as investors exit cash to pursue investments, he said.
Magazine: Bitcoin to see ‘one more big thrust’ to $150K, ETH pressure builds: Trade Secrets
Unlock the Secrets of Ethical Hacking!
Ready to dive into the world of offensive security? This course gives you the Black Hat hacker’s perspective, teaching you attack techniques to defend against malicious activity. Learn to hack Android and Windows systems, create undetectable malware and ransomware, and even master spoofing techniques. Start your first hack in just one hour!
Enroll now and gain industry-standard knowledge: Enroll Now!
0 Comments