CandleFocus

Key Indicators Challenge Fed's 'Normalization' Rate Cut That Torched Bitcoin Rally

After the U.S. Federal Reserve cut rates by 50 basis points, there is a debate on whether it represents a move towards normalization or preparation for an economic downturn. Risk assets, including cryptocurrencies like Bitcoin, have rallied, suggesting that markets view the rate cut as a normalization move. However, indicators such as rising unemployment rates, a decline in the ratio between leading and lagging economic indicators, and surging gold/oil ratio point to a potential economic slowdown. This suggests caution for investors and a potential scaling back of exposure to risky investments.

Related News