Bitcoin’s recent price action suggests that the market may be underestimating the likelihood of a Federal Reserve interest rate cut in January. Several factors support this view. Firstly, inflation data, while still above the Fed’s target, has shown signs of cooling. This could give the Fed room to ease monetary policy sooner than currently anticipated. Secondly, concerns about a potential economic slowdown are growing, which might prompt the Fed to act preemptively to support growth. Finally, the bond market is already pricing in rate cuts, with the yield curve remaining inverted. Historically, this has been a reliable indicator of future Fed easing. While Bitcoin is a risk asset and sensitive to monetary policy, its current level does not fully reflect the potential for a near-term rate cut. If the Fed does cut rates in January, it could provide a significant boost to Bitcoin’s price.
Source: Why Bitcoin May Be Underpricing January Rate Cut Odds
コメント