The Federal Reserve is expected to lower the federal funds rate by 50 basis points (bps) on September 18, 2024. This rate cut is seen as a response to growing concerns about economic conditions and the need for looser monetary policy to support growth. This decision could have significant effects on financial markets, including cryptocurrency markets like Bitcoin. Low-interest rates typically lead to higher investment in riskier assets like Bitcoin, as yields on other conventional assets are low. The expected rate cut may also positively impact investors and businesses by lowering their interest expenses and undoing some of the damage caused by the recession. The possibility of future rate cuts through mid-2025 suggests that the Federal Reserve is aware of ongoing economic challenges. Overall, this news is seen as bullish for Bitcoin and could increase demand for cryptocurrencies as an inflation hedge.



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