BlockchainBaller
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Will #Bitcoin Pump or Dump after today’s FOMC rate cut ?
The last four times the Fed cut rates by 25 bps, Bitcoin saw a 5–10% dump in the days after.
But this time the setup is different.
Positives
- QT has finally ended after 3 years. If Powell even hints at QE in today’s speech, it could be very bullish.
- This is the 3rd rate cut, which means more liquidity can start flowing back into the market. That usually helps risk assets like Bitcoin pump.
Negatives
- MSCI’s decision on January 15 is important. If they remove MSTR from their global index, Bitcoin can dump hard.
- Japan’s rate decision is on December 19. They’re likely to hike by 25 bps, and historically when Japan hikes, Bitcoin often sees a big dump.
$BTC , $SOL , $ETH
The last four times the Fed cut rates by 25 bps, Bitcoin saw a 5–10% dump in the days after.
But this time the setup is different.
Positives
- QT has finally ended after 3 years. If Powell even hints at QE in today’s speech, it could be very bullish.
- This is the 3rd rate cut, which means more liquidity can start flowing back into the market. That usually helps risk assets like Bitcoin pump.
Negatives
- MSCI’s decision on January 15 is important. If they remove MSTR from their global index, Bitcoin can dump hard.
- Japan’s rate decision is on December 19. They’re likely to hike by 25 bps, and historically when Japan hikes, Bitcoin often sees a big dump.
$BTC , $SOL , $ETH
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
