#chance #interest #rate #cuts
Of bitcoin (BTC) price is heavily in the red today and has plunged below $57,000. This appears to be the result of the poor prospects for the American economy. Inflation in the United States is rising and as a result the US central bank (Federal Reserve) has to postpone its interest rate cuts further and further.
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No interest rate cuts in 2024?
According to the market, there is now a 42 percent chance of a scenario in which we see no rate cuts from the Federal Reserve in 2024. The last time interest rate expectations were at this dramatic level was in October 2023.
By comparison, in January 2024, the market said there was only a 10 percent chance that we would see no interest rate cuts this year.
Markets are now pricing-in a 42% chance of ZERO interest rate cuts in 2024.
The last time interest rate expectations were at this level was in October 2023.
By comparison, in January the market saw only a 10% chance of no cuts in 2024.
In just a few months markets have gone… pic.twitter.com/hhsUhSzeNl
— The Kobeissi Letter (@KobeissiLetter) April 30, 2024
The sentiment on this market has completely turned around in that regard. However, there is a chance that the market has swung in a somewhat extreme direction. If we get a positive surprise, it could give prices a significant boost.
Tonight it is the turn of the US central bank to make a new interest rate decision. The decision itself is clear: the interest rate will remain unchanged, but the words of chairman Jerome Powell during the press conference that follows may provide relief.
If Powell indicates that the US central bank still plans to cut interest rates this year, then that could be the case bitcoin rate give it another tap up.
A deep red sea on the financial markets
The financial markets turned red across the board yesterday. It wasn’t just bitcoin that suffered. The American stock market also ended deep in the red yesterday. It seems that the fear of a year without interest rate cuts is being absorbed into the prices.
Deep RED heat map today as we head into the Fed meeting tomorrow.
Earnings not helping with all but Amazon, $AMZNtrading sharply lower.
Investors are nervous. pic.twitter.com/EodMfahpSH
— The Kobeissi Letter (@KobeissiLetter) April 30, 2024
Investors are nervous and we may be on the wrong track at the most important interest rate meeting of the past few months. Will Jerome Powell give the markets a helping hand or is inflation more important to him than the S&P 500 and the Nasdaq?
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