Goldman predicts 2024 Fed rate cut: Good for Bitcoin?
Goldman Sachs economists, including Jan Hatzius and David Mericle, have predicted that the Federal Reserve may begin a series of interest rate cuts by the end of June 2024. The bank believes that the current interest rate policy may be too restrictive, especially if inflation rates continue to trend towards the central bank's target. However, the bank also acknowledges the unpredictability of the Federal Reserve's decisions and suggests that there is a significant risk that the FOMC will instead hold steady. The recent data showing US inflation rising at a slower-than-expected rate of 3.2% further complicates the picture. Goldman Sachs expects the Fed's benchmark rate to stabilize around 3 to 3.25%.
🌎《Now you can now start trading at TNNS PROX》📈
🔥Start trading today, click "sign up" from the link above.
Goldman predicts 2024 Fed rate cut: Good for Bitcoin? What Does This Mean For Bitcoin Price?
Expectations of a rate cut from Goldman Sachs are in line with market expectations according to the CME FedWatch Tool. In May 2024, 68% already expect there to be at least a 25 basis point (bps) rate cut. Goldman predicts 2024 Fed rate cut: Good for Bitcoin?
It is uncertain whether macro events will have an impact on the Bitcoin price in the future. Despite the stock market surging to all-time highs over the past few months, BTC has increasingly been decoupled from macro events and has remained stagnant around the $30,000 mark.
The timing of upcoming events could be beneficial for the Bitcoin market. The deadline for spot Bitcoin ETF filings from major players such as BlackRock, Fidelity, Investco, VanEck, and WisdomTree is on March 15, 2024. Additionally, the Bitcoin halving is expected to occur at the end of April (currently set for April 26).
The anticipation for these events, combined with a relaxed monetary policy from the Federal Reserve, could be a significant catalyst for the Bitcoin price.
As of now, BTC is trading at $29,426 and has experienced another uneventful weekend during the liquidity summer drought. To establish any bullish momentum and initiate another push towards $30,000, it is crucial to break above $29,550.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.