- Fed’s expected rate cut may boost Bitcoin and altcoins, sparking a potential market rally.
- Despite historical patterns, current trends suggest BTC might defy September’s usual slump.
According to Citi analysts, the US Federal Reserve is expected to announce a 50 basis point rate cut at their upcoming meeting, driven by recent job market data. The US non-farm payroll data is projected to show 125,000 new jobs in August with an unemployment rate of 4.3%.
Following CNF’s recent update discussing whether a Bitcoin reversal is incoming, three altcoins that should be considered for holding were suggested. The anticipation of a significant rate cut has sparked discussions about a potential rally in Bitcoin and altcoin prices.
Fed Rate Cuts Could Boost Crypto Amid Market Shifts
Lower interest rates often boost market sentiment, increasing investors’ risk appetite. With the Fed likely to ease monetary policy further, market watchers are optimistic about a positive impact on cryptocurrency prices.
However, despite Bitcoin’s historically weak performance in September, recent trends and on-chain data suggest the possibility of defying this pattern, potentially leading to positive trading outcomes for BTC this September.
Meanwhile, the US 10-year Bond Yield fell 1.94% to 3.836%, and Ethereum’s price dropped 1.7% to $2,463. This data could lead the Fed to adopt a softer approach to their policy rate plans, shifting focus from inflation to supporting the slowing labor market.
As of now, Altcoin has a circulating supply of 123,175 ALT from a total supply of 134,063 ALT. Bitcoin (BTC) is trading at $57,886.61, with a decrease of 2.08% in the past day and 2.22% in the past week. See the BTC price chart below.
