What happened?
In light of weak job growth and softer inflation, economists predict an almost certain Fed rate cut. This marks the first easing since January. In response to these developments, Bitcoin has surged above $116,000, sparking predictions of a potential rally towards $140,000.
Who does this affect?
This shift in monetary policy impacts not only investors and financial markets, but also job seekers and businesses. Markets have fully priced in the September cut and now anticipate three reductions by year-end. Bitcoin investors, in particular, stand to benefit from this accommodative shift.
Why does this matter?
The Fed rate cut is significant as it influences borrowing costs, impacting everything from consumer loans to mortgages. On the market front, the rate cut and the resulting surge in Bitcoin could attract more institutional interest in the cryptocurrency market, potentially driving up prices even further.