TL; DR
Full story
Bitcoin is like a well-trained puppy waiting for its owner to give it the “OK” so it can gobble down a bowl of kibble.
(The chunks in this analogy are investor dollars).
The “OK” that Bitcoin investors are waiting for is a hint from the Federal Reserve that they will soon start cutting interest rates.
(Making loan/credit repayments cheaper and allowing market players to take out larger loans and invest in higher risk assets such as crypto).
The Fed meets this Wednesday, and while no one really expects them to announce a cut, most will be reading the tea leaves from Fed Chairman Jerome Powell’s public statements – hoping to unravel the indication of rate cuts in September.
If/when that happens, there’s a good chance the crypto market will recover.
Here are the indicators that we will see a rate cut in September:
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The price of commodities (also called inflation) rose in June, but only modestly, indicating that inflation is slowing and the Fed can safely cut spending.
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Consumer spending has slowed over the past month, indicating a weakening economy (a good solution for that is an interest rate cut).
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In the US, payments are pending **checks notes **$35 trillion in debt. If the Fed lowers interest rates, the US will pay less on those loans.
Here’s what we can expect in the coming week:
Inconstancy. And a lot of it.
Markets like certainty, and right now there is a lot up in the air economically (effects of inflation, elections, US debt payments, etc.)
Heck, yesterday we saw Bitcoin around $70,000, then promptly falling back below $68,000 (good news is that the overall trend is still positive).
Anyway, brace yourself!
