Goldman Sachs has spoken: 'Cascading interest rate cuts' will come in 2024
How will the cuts happen?
In 2024: Cuts of 25 basis points each in September, October, and December
Early 2026: Another cut of 50 basis points (January + March)
Total interest rate cuts of 125 basis points
What does this mean?
Interest rate cuts = releasing liquidity = maximum benefits for risk assets!
In the macroeconomy, a rate cut by the Federal Reserve represents 'water being released,' which is extremely favorable for gold, tech stocks, and especially Bitcoin.
Do you remember 2020?
After the interest rate cuts and unlimited QE, Bitcoin skyrocketed from $4,000 to $69,000!
In simple terms: Why is the crypto space so concerned about interest rate cuts?
Rate cuts = cheaper borrowing, funds flow into stock and crypto markets
Low interest rates = decreased attractiveness of savings, more people willing to take investment risks
The crypto market is extremely sensitive to liquidity, and rate cuts typically ignite bull market cycles
What will happen to Bitcoin?
Currently, BTC is still consolidating around $107,000
Technical indicators suggest a potential 'new round of breakout'
If rate cuts begin in September, there is hope for a surge into the $140,000 - $150,000 range in the fourth quarter of this year
In summary:
Rate cuts are not happening now, but the market will react in advance.
If you are still hesitant, consider this: Did you miss the last bull market because you acted too late?
