Why a Rate Cut In September
Isn’t Good News?
A September rate cut, often linked to economic weakness, may signal stress rather than strength, potentially unsettling markets that have already priced in the cut, including crypto like Bitcoin at $114K and altcoins.
Crypto typically benefits from easy money with short-term price surges, as seen with altcoins jumping +8% after July’s weak jobs data, but gains may fade if the cut reflects economic downturn, depending more on inflation and Treasury yields.
The true impact on crypto hinges on the cut’s context:
strength-driven cuts could sustain trends, while weakness-driven cuts might lead to a retreat of capital after an initial spike.
