The Fed Is About to Trigger More Bitcoin Volatility

The conversation around Bitcoin's recent price movements has captured attention as macroeconomic factors take center stage.

As Bitcoin's recent price movements continue to garner attention, macroeconomic factors are taking center stage in influencing the crypto market's trajectory. In this segment, The Alethea Narrative founder Craig Shapiro joins Roundtable anchor Rob Nelson to delve into how these factors could impact Bitcoin in the coming months.

"The biggest thing that's driving Bitcoin currently is macro momentum, this economic momentum and what is the Fed going to be doing at the next meeting," said Shapiro, regarding the driving force behind Bitcoin's recent performance.

"You saw Bitcoin on Friday was the best performing asset in the market."

The potential for Federal Reserve rate cuts is a hot topic in the financial world. The Fed is largely expected to cut rates for the first time since March 2020 at its next policy meeting just a couple weeks from now. Friday's big jobs report is likely to play a large factor in whether the Fed leans into a 50-basis point cut or a standard 25-basis point move.

"The market's already pricing in four rate cuts in the next three meetings and eight rate cuts in the next six meetings," said Shapiro, highlighting the significance of upcoming economic data in shaping the Fed's decision-making process.

"We'll get a better sense whether or not the Fed is going to be aggressive in that rate cutting."

Looking ahead, Shapiro strikes a note of caution. "I think there is a reasonable chance that we could see a much choppier risk-taking environment between now and the election," he said.

However, he maintains an optimistic outlook for Bitcoin's future: "As we push through the end of this year and move into next year with a much more aggressive cutting cycle, I think that's the environment where Bitcoin's really going to thrive."

The above is the detailed content of The Fed Is About to Trigger More Bitcoin Volatility. For more information, please follow other related articles on the PHP Chinese website!