Reduction of the interest rate will be favorable for bitcoin and cryptocurrencies.
The expectation of the majority is that the Fed will make the feat cuts, but the market wants certainty.
The Bitcoin (BTC) price is in intense peace of about $ 110,000. The market is waiting for any signal that Jerome Powell, President of the US Federal Reserve (Fed) on September 17. It will be known on the day when the governing body of the USD policy will finally decide, we reduce interest rates.
And what is this related to bitcoin? To explain this in a simple way Low interest rates make cheaper to ask for borrowed moneywhat is equivalent to a Introduction of liquidity which can move to financial assets such as stocks, bitcoin and cryptocurrencies.
Carmela, German, financial analyst, commented in exclusive statements in this environment that “when the world’s money grows, it soon, two to three months transmitted in Bitcoin because some of the money always puts them in BTC and usually increases in price.”
Cryptoototics it showed The expectation of the majority is that, indeed, Jerome Powell announced a decrease in interest rate Wednesday next week.
In the decentralized rates platform, Polymarket, users believe there is an 87% probability that the Fed lowers interest rates by 25 main points, as seen in the following image:
Coinbase analysts, exchange exchanges and large cryptocurrencies in the US believe that not only interest rates but also one by the end of 2025 will be reduced in September.
And Bloomberg experts, Johnne Mars and Katarina Sarai, comment:
“Investors are already completely reduced by the type of type at the Fed Country policy meeting on September 16 and 17. They will also foresee a total of three type reductions this year, futures contracts reports. Some Fed observers have said weak employment data could raise officials to the sections of the point than usual this month, although the inflation data to be published next week may mitigate these expectations.
Joenel Mars and Catharine Sarai, Bloomberg analysts.
All this seems very good news for Bitcoin and they are. But, The market is waiting for certainty rather than the assumption. Thus, it is very likely that -the beginning of this text -soldiers and short -term investors (which are the ones who buy and sell BTC with news day by day), they expect any testimony or rumors that Powell will say on September 17.
Ordinary readers of this informative portal know that Powell, in his monthly presentation, not only announces interest rates, but also gives a traditional speech in which he suggests the following Fed movements. What he says can change the financial markets.
For these reasons, Bitcoin remains in countless. Except for speculation, Truth time will come on September 17 And there, most likely, the BTC price responds according to Powell’s statements.
