Bitcoin-Pumping Wealth Advisor Licks Chops Over Fed Meeting

The Federal Reserve will hold its next policy meeting tomorrow, and analysts predict that the US central bank will adopt its second straight interest rate cut. That move should bolster the stock market, but does it mean anything for bitcoin?

Will Interest Rate Cut Ignite Bitcoin Price Boom?

Nigel Green, the founder of $10 billion wealth advisor deVere, says that the Fed’s ongoing dovish pivot should snap the bitcoin price out of its recent slump and launch it to a new yearly high.

“Bitcoin, the world’s largest cryptocurrency by market cap, is likely to breakout of its recent sideways trading pattern and be given a healthy boost by the Fed’s rate cut,” Green said in remarks shared with CCN. “This is because an interest rate cut reduces the incentive to keep the fiat currency. In addition, rate cuts typically lead to higher inflation, which reduces the purchasing power of traditional currencies.

“As such, Bitcoin, and other decentralized cryptocurrencies, become more attractive and the price will adjust upwards accordingly,” Green added.

fed interest rate cut probability
Fed Funds Futures imply a roughly two-thirds probability of a 25-basis point interest rate cut at this week’s FOMC meeting. | Source: CME FedWatch Tool

If this story sounds familiar, that’s because you’ve heard it before.

In theory, dovish central banks are bullish for disinflationary assets like bitcoin. Over time. But that doesn’t necessarily mean that BTC will operate as a real-time hedge against specific central bank policy adjustments.

Just look at what happened two months ago.

As the July Federal Open Market Committee (FOMC) meeting loomed, crypto investors waited with bated breath to see how the bitcoin price would respond to the Fed’s interest rate cut – the first in the…

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