TL;DR
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Bitcoin is like a well-trained pooch just waiting for its owner to give the “OK,” so it can gobble up a bowl of kibble.
(The kibble in this analogy is investor dollars).
The “OK” that Bitcoin investors are waiting for is a hint from the Federal Reserve that they’ll soon start cutting interest rates.
(Making loan/credit repayments cheaper and allowing market players to take out larger loans and invest in higher-risk assets, like crypto).
The Fed meets this Wednesday, and while no one is really expecting them to announce a cut, most will be reading the tea leaves of Fed chair Jerome Powell’s public statements — hoping to tease out the indication of September rate cuts.
If/when that happens there’s a high chance the crypto market will rally.
Here’re the indicators that suggest we’ll see a September rate cut:
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The price of stuff (aka: inflation) rose in June, but only modestly, indicating inflation is slowing and the Fed can cut safely.
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Consumer spending slowed last month, hinting at a weakening economy (a good fix to that = lowering interest rates).
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The US has payments coming up on **checks notes ** $35 trillion worth of debt. If the Fed lowers rates, the US pays less on those loans.
Here’s what we can expect in the coming week:
Volatility. And lots of it.
Markets like certainty, and right now, a lot is up in the air economically (impacts of inflation, elections, US debt repayments, etc.)
Heck, yesterday we saw Bitcoin round $70k, then promptly dip back down below $68k (good news is, the overall trend is still positive).
Either way, brace yourselves!
