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


19 Sep 2023 8:35 PM

The Federal Reserve’s next meeting could have strong implications for Bitcoin’s price trajectory....

  • 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.

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You May Ask

What does BlackRock expect the Federal Reserve to do at its next meeting?How has the Fed's rate hiking regime affected stock and crypto prices?What is the view of Wharton finance professor Jeremy Siegel regarding the Fed's rate hike?How does Bitcoin historically correlate with equities and central bank activity?What is the warning given by the crypto market analyst regarding Bitcoin's performance in a recession?

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