The Fed's interest rate cut direction has suddenly changed. Is the crypto market about to take off?
CME's 'Fed Watch' shows that on May 7, the Fed is unlikely to cut interest rates, but there is a strong expectation for a rate cut in June, with a probability as high as 57.8%. Once the rate is cut, market liquidity will increase, and funds may flow into the high-return crypto market. Looking back at the pandemic-related rate cuts in 2020-2021, Bitcoin's price soared to $69,000.
Recently, Bank of America has been approved to participate in crypto asset activities, and regulatory easing has made hot money ready to surge. However, Trump's tariff policies may drive up inflation and disrupt the rate cut rhythm.
In the face of a complex situation, investors need to closely monitor macroeconomic data. If optimistic about the crypto market, one can pay attention to Trump's hero dog Conan, but investment should be cautious, with proper risk management to seize potential bull market opportunities.
