Crypto Assets Could Benefit if Fed Signals More Rate Cuts — Market Talk
Cryptocurrency prices could rise if the Federal Reserve resumes interest-rate cuts on Wednesday and signals further policy easing to come, IG analyst Chris Beauchamp says in a note. "If the FOMC signals that this week's meeting is just the start of more cuts, then crypto assets should continue to be some of the prime beneficiaries." Money markets fully price a 25 basis-point rate cut Wednesday, LSEG data show. Some 81% of IG clients are long bitcoin, expecting it to rise, and 83% long ethereum. Bitcoin falls 0.8% to $114,895 after earlier hitting a three-week high of $116,783, according to LSEG. Ethereum falls 2.2% to $4,517. The broad pullback in cryptocurrencies reflects profit-taking after recent gains, Beauchamp says. ([email protected])