What the Next Fed Meeting Could Mean For Bitcoin - Decrypt

Decrypt
Decrypt

19 Sep 2023 7:52 PM

If the Fed keeps interest rates flat—as the market expects it will—it could be a bullish sign for Bitcoin, according to analysts....

  • The Federal Open Markets Committee (FOMC) is expected to announce a flat policy interest rate.
  • There is a 99% likelihood of a flat rate according to the CME FedWatch tool.
  • A flat rate could be bullish for Bitcoin, as its price has historically correlated with risk equities and central bank policy.
  • Wharton Finance Professor Jeremy Siegel believes the Fed should not raise rates further, as it could negatively impact employment and inflation.
  • Siegel predicts a strong stock market for the next few months based on the current strength of the economy.
  • Bitcoin experienced significant growth after the Federal Reserve lowered its benchmark interest rate to 0.25% in 2020.
  • A popular crypto YouTuber and trader believes a 0% rate increase could be bullish for Bitcoin.

The sentiment of the article is generally positive, as it suggests that a flat policy interest rate could be beneficial for Bitcoin and the stock market. However, there is also a mention of potential negative consequences if the Fed were to raise rates.

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You May Ask

What is the likelihood of a flat policy interest rate according to the CME FedWatch tool?How has Bitcoin historically correlated with risk equities and central bank policy?Why does Wharton Finance Professor Jeremy Siegel believe the Fed should not raise rates further?What impact did the Federal Reserve's benchmark interest rate cut have on Bitcoin in 2020?What is the opinion of a popular crypto YouTuber and trader regarding a 0% rate increase?

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