Federal Reserve's December Cut Could Trigger Bitcoin Rally
Federal Reserve Governor Milan has indicated the possibility of another interest rate reduction in December. In a statement, Milan expressed that forecasts suggest further monetary easing. This comment has drawn significant attention from traditional and crypto markets alike, as noted by Milan: "In my view, forecasts indicate another rate cut in December."
The anticipated rate cut could increase market liquidity, affecting investments in risk assets like Bitcoin and Ethereum. These assets historically react positively to lower rates, potentially leading to increased institutional allocation.
Milan's views have sparked discussions across financial sectors. Institutional players are anticipating a shift in risk appetite, aligning portfolios to potentially capitalize on these macroeconomic changes.
Crypto Market Poised for Gains as Liquidity Risks Drop
Federal Reserve Governor Milan announced the potential for another interest rate cut in December, gathering attention from financial sectors and the cryptocurrency community.
The anticipated rate cut raises interest in Bitcoin and Ethereum, suggesting increased speculative allocations amid expected easy US monetary policies and growing market optimism.
Historically, dovish monetary policy announcements, like those anticipated from the Federal Reserve, often lead to short-term crypto market rallies, as seen during easing cycles in 2020 and 2021.
Bitcoin (BTC) is currently priced at $103,590.54, with a market cap of $2.07 trillion. Over the past 24 hours, trading volume reached $107.38 billion, a 28.54% rise. BTC's price fluctuated, with a slight 0.90% increase in the last day but a 17.26% decline over 30 days.
According to research, a December rate cut might further buoy crypto markets. Previous easing cycles saw increased speculative investments in digital assets, often sparking short-term asset price surges amidst proactive fiscal policies.