Powell admits: The job market can't hold up anymore, and interest rates must be drastically cut next year!
If the Federal Reserve cuts interest rates next year more aggressively and quickly than expected, it would be good news for the entire cryptocurrency market, including Bitcoin.
Why?
Lower interest rates mean cheaper borrowing costs, which theoretically increases the amount of money circulating in the market. Some of this excess liquidity will likely seek high-yield investments, and cryptocurrencies are a common target.
In past rounds of interest rate cuts or easing cycles by the Federal Reserve, there has often been an accompanying rise in the cryptocurrency market. Therefore, this news generally enhances market optimism.
Goldman Sachs mentioned to pay special attention to the unemployment rate. From now on, every month when the U.S. releases employment data, you should take a look at whether the unemployment rate is rising. If the unemployment rate continues to rise, the likelihood of the Federal Reserve accelerating interest rate cuts will increase, which is a potential positive signal for the crypto space.
Currently, with the Bank of Japan raising interest rates and U.S. CPI data being released consecutively, the market is oscillating between the policies of the two major central banks. Although the interest rate cut scenario described in the Goldman Sachs report is a long-term positive, short-term traders are more concerned about how to position themselves. Scan 币安聊天室 to help you position for high explosive potential coins!
