Will #Bitcoin Pump or Dump after today's FOMC rate cut?
In the last four times the Fed cut rates by 25 bps, Bitcoin saw a decline of 5–10% on the days after.
But this time the situation is different.
Positive aspects
- QT has finally ended after 3 years. If Powell even hints at QE in today's speech, it could be a very bullish signal.
- This is the third rate cut, which means that more liquidity may start flowing back into the market. This usually helps risky assets like Bitcoin to rise.
Negative aspects
- The MSCI decision on January 15 is crucial. If they remove MSTR from their global index, Bitcoin could fall sharply.
- Japan's rate decision on December 19. They are likely to raise by 25 bps, and historically, when Japan raises, Bitcoin often sees a significant drop.
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