- Rate cut odds just went from 33% to 84% in a week.
- Can Bitcoin surge after another rate cut and reclaim a bullish prices?
- Analysts highlight bullish BTC recovery movements.
Popular analyst and crypto trader, Lark Davis, discusses how rate cut offs just went from 33% to 84% in a week. This is an interesting development, as just a few days ago, Davis pointed out that rate cut odds had fallen significantly, and now they are back up again. Let’s take a dive into what caused this sudden upward surge in rate cut expectations and how it will influence the market.
Rate Cut Odds Just Went From 33% to 84% in a Week
The crypto market has always been easily influence by not just external financial matters but political factors as well. Like every other financial market, the crypto market is not independent from the events of the rest of the world. To highlight, geo-political, social-economical, and several other events contributes and influences the actions of the market and its movements.
Over the recent years, several wars and conflicts have led to rocky and uncertain times for the crypto market and the rest of the world, but the market has always pulled through, just like the stock markets, crypto too sees many ups and downs. Meanwhile, other external factors too play a major role in influencing the price action of the crypto market. To highlight, one very prominent factor is the Federal Reserve Board and their rate cutting.
Can Bitcoin Price Surge After Another Cut
In the past, whenever there are rate cuts announced by the Fed, these announcements often bode well for financial markets. In particular, both the stock and crypto markets have benefited from rate cut announcements. Since Trump took office once again last year, he has been pressuring Fed Chair, Jerome Powell to announce a 3-point rate cut. However, Powell refused to do so unless certain criteria were met.
Recently, Powell succumbed and announced a few rate cuts, but one one-point rate cuts, btoh of which were announced apart form one another. This infuriated Trump who wanted t see more rate cut action at a much faster pace. Now, once again, the world anticipates another rate cut announcement from Powell and the Fed. Although some believe Powell may be replaced soon, leading to faster rate cuts.
As we can see from the post above, teh reputed crypto figure, Lard Davis states that rate cut odds just went from 33% to 84% in a week. The jump came after NY Fed President Williams hinted at “further adjustment in the near term”. The rest of the Fed remains split, but the market is listening to the doves right now and the absence of October Labor data only complicates things for both the Fed and the markets that are trying to predict the outcome.
Bitcoin likely put in its local bottom near $80,000 on Friday and is already pressing back toward $90,000. Could this be a BTC price rally in the works and will the Fed announcing another rate cut help boost the price of BTC to reclaim its 6-digit prices once again?
