If the Fed really cuts interest rates in September, this move will have a significant impact on the crypto industry. Interest rate futures suggest that a rate cut this month is basically off the table, but there is a good chance of a 25 basis point cut in September.
At this critical juncture, the new Fed chair has not yet been decided, and a new official will definitely have their own style. If there is indeed a rate cut in September, with more money in the market, it's possible that a considerable amount of funds will flow into high-volatility areas like cryptocurrencies—after all, this industry thrives on liquidity.
However, we shouldn't be too optimistic. If the new chair takes a stern attitude toward the crypto industry, even if rates are cut and liquidity is increased, tighter regulations could still suppress the market. But if the stance is more open, things could get lively, and Bitcoin, Ethereum, and others might take the opportunity to surge.
In any case, over the next two months, the crypto market will likely bounce around based on Fed news. I'm quite looking forward to seeing how the expectations of interest rate cuts and the new chair's appointment combine to stir up new developments in this space.
