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Time To Dump Bitcoin? Economist Predicts Massive ‘Sell The News’ Event

2024-09-15 Author: Content Editor

The upcoming Federal Open Market Committee (FOMC) meeting is expected to impact the short-term outlook for Bitcoin and other digital assets. There is anticipation of an interest rate cut, with speculation ranging from a 25-basis point reduction to a more substantial 50-basis point cut. Economist Steve Hanke believes a 25-basis point cut could result in a "sell-the-news" event for the cryptocurrency sector, as the market has already priced in this possibility. However, a 50-basis point cut could "give the market a lift" as it has not yet been fully priced in. A rate cut could provide a favorable environment for cryptocurrencies as traditional investments offer lower returns. The market reaction to a rate cut is uncertain due to current market conditions and speculation about whether the rate cut is already priced in. At the time of writing, Bitcoin is trading at around $60,000, up 3.5% in 24 hours.

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