BlackRock and Others Predict Fed’s Next Move: What it Means For Bitcoin

• BlackRock expects the Federal Reserve to keep its policy interest rate flat at its next meeting.
• This prediction is in line with market expectations and could offer Bitcoin a short-term price boost.
• BlackRock's head of Global Fundamental Income Strategy expects the Fed's target rate to remain elevated until mid-2024 before modest cuts bring it down.
• Inflation has been moderating but is still above the target, and a deterioration in economic activity is needed to see a change in the Fed's stance.
• The Fed's rate hikes since March 2022 have impacted stock and crypto prices, but the consequences have been contained.
• Wharton finance professor Jeremy Siegel believes the Fed won't raise rates on Wednesday, considering the strong performance of the economy.
• Bitcoin has historically correlated with equities and may be influenced by the market sentiment regarding the end of the tightening cycle and potential recession risks.
• A crypto market analyst warns of a likely recession starting next year and suggests that Bitcoin may not perform well in that environment.

The sentiment in the article is mixed. BlackRock's prediction of a flat interest rate and potential short-term price boost for Bitcoin is seen as positive. However, the expectation of the Fed's target rate remaining elevated until mid-2024 and the warning of a recession next year are viewed as potential negative factors.