Interest rate cut in September crucial for crypto bullishness and liquidity, Bitfinex analyst claims

The Fed decided to maintain the interest rates at a 23-year high today, as reported by Crypto Briefing. The decision follows the market expectations, but Jerome Powell didn’t confirm the estimated cut at September’s meeting, despite revealing there is an ongoing discussion at the Fed about this possibility.

However, the Chairman of the Fed doubled down on the need to see more falling inflation numbers and strong growth numbers. Jag Kooner, head of derivatives at Bitfinex, highlighted the importance of a rate cut in the next Fed meeting for the crypto market.

“A rate cut in September would provide a sense of bullishness and could generally increase liquidity in the market, which will be positive for Bitcoin and other cryptocurrencies as investors seek higher returns outside traditional assets,” explained Kooner.

Thus, this landscape could lead to upward pressure on Bitcoin’s price and increased exchange-traded funds (ETFs) inflows, as investors look to capitalize on a more favorable environment for risk assets.

Moreover, Kooner added there is a lot of confidence in the market at the moment, particularly as even potentially negative news like the Mt. Gox Distribution, the German government selling their Bitcoin holdings, and a lot of recent significant on-chain movements have not been able to substantially impact the Bitcoin price to the downside.

Since Powell considered a September cut, despite the lack of confirmation, a Bitcoin parabolic upward movement depends on the market data set to be published until the next Fed meeting.claims appeared first on Crypto Briefing.

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