Fed’s Potential September Rate Cut Seen as Positive for Bitcoin

Marcus_Web3
08-02

Fed’s Potential September Rate Cut Seen as Positive for Bitcoin $Bitcoin(BTC.USD.CC)$ *

* The prospect of a U.S. Federal Reserve rate cut in September is seen as bullish for Bitcoin and crypto markets, according to QCP Capital's August 1 report.

Fed Rate Decision & Crypto Prices

On July 31, minutes from the Federal Open Market Committee meeting revealed that Fed chair Jerome Powell and other officials at the American apex bank decided to leave interest rates unchanged.

Powell and the Fed maintained tighter monetary policies for another month, keeping rates between 5-5.5% as the regulator held out for more positive economic data.

According to QCP Capital, the FOMC minutes suggest that the Fed leans toward dovish policies as the year inches toward its final quarters. “A September cut has been fully priced in,” QCP analysts wrote in an Aug. 1 note.

Jag Kooner, head of derivatives at Bitfinex, echoed QCP’s sentiment, adding that a September rate cut would bolster bullish momentum and improve market liquidity. Bitcoin and other cryptocurrencies regarded as risk assets would benefit from more capital inflows as investors seek higher returns from outside the stock market. 

Kooner said: “There is a lot of confidence in the market at the moment, particularly as even potentially  negative news like the  Mt. Gox Distribution, German Government selling, and many recent significant Chain movements have not been able to impact the Bitcoin price to the downside substantially.”

The top 10 companies holding the most Bitcoin.

$MicroStrategy(MSTR)$ $Marathon Digital Holdings Inc(MARA)$ $Tesla Motors(TSLA)$ $Hut 8 Mining Corp(HUT)$ $Coinbase Global, Inc.(COIN)$

$Galaxy Digital Holdings Ltd.(BRPHF)$ $Block(SQ)$ $Riot Platforms(RIOT)$ $Bitcoin Group SE(BTGGF)$ $CleanSpark, Inc.(CLSK)$ and $MicroStrategy(MSTR)$ worth look at.

Related bitcoin assets: $Coinbase Global, Inc.(COIN)$ $Marathon Digital Holdings Inc(MARA)$ $Block(SQ)$ $Hut 8 Mining Corp(HUT)$ $MicroStrategy(MSTR)$ $CME Bitcoin - main 2405(BTCmain)$ $Invesco Galaxy Bitcoin ETF(BTCO)$ $BIT Mining(BTCM)$ $WisdomTree Bitcoin Fund(BTCW)$ $Grayscale Bitcoin Trust(GBTC)$ $Fidelity Wise Origin Bitcoin Fund(FBTC)$ $iShares Bitcoin Trust(IBIT)$ $ARK 21Shares Bitcoin ETF(ARKB)$

# Rate Cut Countdown: Last Chance to Buy Treasury Bonds?

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  • Basics101
    ·08-02
    Not sure I would say Bullish for Bitcoin it’s been going down since that announcement, currently the lowest it’s been for nearly two weeks.
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  • Rogskywalker
    ·08-02
    Is the current situation a storm before the sunshine?
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