The FED cut rates, what should we expect now for bitcoin?
Basically the same that we expected before... higher prices going forward.
It had been expected for weeks and months now that the FED would eventually have to start cutting rates.
The president had been calling for it for months now, claiming that markets would be even higher had they been cutting rates instead of raising them.
However, this recent rate cut wasn't exactly what I and many others had expected...
Instead of this being the beginning of a new easing cycle, it sounds like the FED doesn't want to cut any more unless they absolutely have to.
Stating that this was just a mid-cycle rate cut instead of a new easing cycle.
That wasn't what the markets, or myself, really wanted to see.
(Source: https://www.bbc.com/news/business-49183329)
What does that mean for bitcoin?
Overall, this is still rocket fuel for bitcoin.
Anything that weakens the dollar and promotes 'easy-money' is good news for bitcoin.
It's bullish, but not quite as bullish as I had originally hoped it would be.
However, right after the cut, even more fuel was heaped on...
The Donald couldn't contain himself not being the main talking point in the news for a few days so he decided he would hike tariffs on China.
This basically came out of left field as most thought the trade war with China was winding down.
This fresh round of tariffs signals that the war is not winding down, and in fact is escalating.
Interesting enough, bitcoin started this recent bullish run around the same time the US and China trade wars began...
It's possible this will also help put a bid under bitcoin in the near term (again) as well.
So, now we have a rate cut and a fresh round of tariffs with China.
Two things that should help the bitcoin bull thesis going forward.
Stay informed my friends.
-Doc