After the U.S. Federal Reserve (Fed) decided to cut interest rates by 2 points (50 basis points) to 4.75% to 5% in the early morning of yesterday (19th), Bitcoin continued to advance rapidly, once exceeding US$64,000 at noon, and has risen by nearly 8% since Thursday. %.
Standard Chartered Bank: Bitcoin and cryptocurrencies will continue to rise after the Fed cuts interest rates
Will the Federal Reserve initiate a rate cut cycle and be a catalyst for subsequent gains in Bitcoin and the broader cryptocurrency market?
According to The Block, Geoff Kendrick, head of foreign exchange and digital asset research at Standard Chartered, predicted that Bitcoin and digital assets will continue to be boosted after the Federal Reserve’s recent interest rate cut, which is more due to favorable overall economic conditions. , rather than the promotion of the US presidential election.
Regardless of the outcome of the upcoming U.S. presidential election in November, overall economic factors will drive digital asset prices higher.
Kendrick highlighted that digital assets are leading the way in terms of performance for the first time in a while following Thursday's rate cut by the Federal Open Market Committee (FOMC). He also asserted that the impact of the U.S. presidential election on Bitcoin prices is not as great as in the past. "While the U.S. presidential election is important, macro drivers are beginning to dominate."
He also added that he is monitoring the spread between short-term and long-term U.S. Treasury yields, "I am watching the U.S. 2s10s curve, and the steep U.S. yield curve is good for digital assets."
Since July 2022, there has been the longest "inversion" in history between the 10-year and 2-year U.S. bond yields of 793 days. The spread began to turn positive at the end of August, and the inversion was officially lifted in early September.
Extended reading: The longest U.S. bond yield inversion in history has ended. Can we escape the fate of economic recession this time?
Bitcoin spot ETF inflows will rebound in October
Kendrick also said that you can pay attention to the inflow of Bitcoin spot ETF funds in October, which may become a force supporting the price of Bitcoin. He noted earlier this month that Bitcoin spot ETF trading volumes will see a seasonal rebound in October.
However, he pointed out that these forecasts depend on continued "positive overall economic factors" rather than political outcomes. And reiterated his previous prediction that "no matter what the outcome of the November election is, Bitcoin will hit another all-time high by the end of the year":
If Trump wins the election, the potential price target of Bitcoin will reach $125,000; if Harris wins, the price target of Bitcoin will be $75,000.
