A 50 basis points (bps) interest rate cut by the US Federal Reserve (Fed) starting this month might adversely affect Bitcoin (BTC) price, 10x Research cautions. 50 BPS Rate Cut Could Spook The Market After it had started hiking interest rates back in March 2022 to contain rampant inflation due to COVID-related supply chain bottlenecks and money printing, the Fed is now set to commence slashing interest rates to stimulate the economy. However, there is a possibility that by initiating a 50 bps rate cut, the Fed might raise the alarm for risk-on assets such as Bitcoin. Data released on September 6, 2024, from the Bureau of Labor Statistics stated that while unemployment has decreased slightly, the US economy generated fewer than expected jobs. This has paved the way for the Fed to embark on its rate-cutting cycle, as the central bank doesn’t want high interest rates to cause irreparable damage to businesses. Related Reading: How Will The US Upcoming Fed Rate Cut Impact Bitcoin? QCP Analysts Weigh In 10x Research notes that a 50 bps rate cut on September 18, 2024, might sig ..
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