While investors and the market are currently focused on spot Bitcoin ETF approval, another important issue for BTC and cryptocurrencies is when the FED will cut interest rates.
While there are many opinions at this point, the final assessment came from Ellen Zentner, Morgan Stanley’s US chief economist.
According to CNN, Ellen Zentner claimed that the FED will keep interest rates constant for longer than the market expects, but will then reduce them more than expected.
At this point, Zentner, who argued that the FED will start reducing interest rates in June, said:
“Make no mistake, they will cut interest rates this year. But the Fed chairman and members may be more patient than the market predicts.
At this point, I think the FED will start the interest rate reduction series in June. The FED will make its first 25 basis point cut in June. “Afterwards, 25 basis point reductions will follow in September, November and December.”
Bitcoin hit its peak of $69,000 in November 2021, when the FED started increasing interest rates. Since the subsequent bear market is directly related to the FED’s interest rate increases, it is thought that a policy change here may return BTC to its old days.
*This is not investment advice.
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