CandleFocus

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

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