🚨 CEX.IO: It’s not about the cut size, but understanding the further path.
The likelihood of the Federal Reserve’s 50 bps rate cut on September 18 skyrocketed from 13% to 67% following last week’s mixed PPI and labor data.
🔻 A 50 bps cut typically signals severe economic stress and often precedes recessions. This move could trigger higher volatility for Bitcoin compared to a smaller 25 bps reduction, raising concerns about the Fed's recession outlook.
⚖️ However, all eyes are on Fed Chair Powell's forward guidance, which could spark even more market volatility. Unclear short-term strategies from the Fed might drive increased risk aversion and weigh heavily on Bitcoin prices.
The likelihood of the Federal Reserve’s 50 bps rate cut on September 18 skyrocketed from 13% to 67% following last week’s mixed PPI and labor data.
🔻 A 50 bps cut typically signals severe economic stress and often precedes recessions. This move could trigger higher volatility for Bitcoin compared to a smaller 25 bps reduction, raising concerns about the Fed's recession outlook.
⚖️ However, all eyes are on Fed Chair Powell's forward guidance, which could spark even more market volatility. Unclear short-term strategies from the Fed might drive increased risk aversion and weigh heavily on Bitcoin prices.