Cryptocurrency investors have experienced positive developments in the past 24 hours, with Bitcoin (BTC) maintaining its position above $62,000. The latest projections from Moody’s provide hopeful news for those involved in risk markets. Investors are eagerly awaiting more details and expectations from the financial forecaster’s latest report.
Will Cryptocurrencies Increase?
According to Moody’s, if their predictions hold true, BTC and other risk markets might continue their upward trend. Their recent forecast suggests a potential unexpected rate cut at the upcoming July 31 meeting. Given that the latest inflation data is low, Moody’s forecast could potentially spark a market surge by the end of July.
What Are the Expectations?
Moody’s statements highlight several key points indicating possible future interest rate reductions. The Federal Reserve might commence policy easing with a 25 basis point cut at the end of July. Additionally, they foresee cumulative rate cuts between 50-75 basis points in 2024 and by 100-125 basis points by 2025.
Investor Insights
Investors can draw the following conclusions from the recent analysis:
- Preparation for potential interest rate cuts by the Federal Reserve should be considered.
- Market sentiment might shift significantly if the rate cut occurs as projected.
- Monitoring Federal Reserve announcements closely will be crucial for making informed investment decisions.
- A rise in BTC and risk markets could present profitable opportunities for investors.
According to FedWatch, the likelihood of rates remaining unchanged at the July meeting is 93%, while the chance of a rate cut in September stands at 95%. The consensus that the Fed will reduce rates by year’s end is nearly unanimous.