- Standard Chartered expects a 25 bps rate cut by the Fed.
- Market implications include a shift in risk assets.
- Potential positive impact on BTC and ETH trading.
Standard Chartered Bank forecasts a Federal Reserve rate cut of 25 basis points at their upcoming meeting, hinting at further easing by year-end in response to economic conditions.
This anticipated policy shift could significantly influence cryptocurrency markets, potentially boosting Bitcoin and Ethereum as liquidity and risk appetite improve under lower interest rates.
Standard Chartered Bank predicts that the Federal Reserve will cut interest rates by 25 basis points. They believe this will happen at the upcoming meeting due to the U.S. job market slowdown and broader global economic conditions.
The analysis, titled “How much will the Fed cut?”, was published by Standard Chartered’s Wealth Management/Research team. It anticipates additional cuts by year-end, aligning with recent dovish remarks from Federal Reserve officials.
“We expect the Fed to cut by 25bps next week and 50bps more by year-end as the US job market slows.” — Standard Chartered Bank Official Research Team
If the rate cuts occur, risk assets such as stocks and cryptocurrencies could see increased investor interest. Historically, lower interest rates have supported a rally in such assets by easing financial conditions and improving liquidity.
Standard Chartered’s forecasts suggest a weaker USD, which could drive increased investment in emerging markets and technology sectors. This economic environment historically correlates with sectors like cryptocurrency, including BTC and ETH, experiencing growth.
While Standard Chartered’s forecasts do not specifically mention cryptocurrencies, implications can be drawn for BTC and ETH. Lower real yields and improved liquidity from rate cuts have previously supported these digital assets.
Historical data and market trends suggest that rate reductions by the Federal Reserve often lead to increased liquidity and risk appetite. This could positively impact cryptocurrencies, as they are generally considered high-risk, high-reward investments.
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