The Federal Open Market Committee (FOMC) is preparing for its meeting on September 18, and the outcome could have a significant impact on the crypto market, particularly Bitcoin. There is speculation about whether the Fed will cut interest rates by 25 basis points (bps) or by a more aggressive 50 bps. While rate cuts have historically boosted risk assets, such as cryptocurrencies, there is concern that a larger cut could indicate economic worries and result in sell-offs. Additionally, Bitcoin has been struggling to break through a key resistance level and is currently down over 2%. Analysts believe that the Fed needs to deliver a 50 bps rate cut to satisfy the market's demand for liquidity and prevent further corrections in Bitcoin and other risk assets. However, too much liquidity too quickly could have a negative effect. Despite the uncertainties, Q4 has historically been a strong quarter for both the S&P 500 and Bitcoin. The outcome of the Fed's meeting and Fed Chair Jerome Powell's comments will be closely watched, as they could set the stage for a Q4 rally or cause market jitters. The upcoming U.S. presidential election adds another layer of complexity to the market as investors consider the potential impact of each candidate's stance on crypto regulation.



Other News from Today