Participants in the Crypto Market may reduce the aggression of the American Federal Reserve in changing its political trend, according to an economist.
“The markets conclude the possibility of rapid price discounts in the coming months by the federal reserve,” economist Timothy Peterson told Cointelegraph on Friday.
“There was no gradual decrease in prices like those currently depicting by the Federal Reserve,” Peterson said, explaining that he expects “sudden impact” to start and may advance in the market.
“Bitcoin will be shaved and boil to a large extent, and I think this will happen in the next 3-9 months.”
Peterson's comments come a few days after the Federal Reserve to reduce its first reduction in 2025 on September 17 at 25 basis points. Prices were widely expected, as the CME Fedwatch tool showed 96 % possibility by a quarter of a point and an opportunity by only 4 % to reduce 50 points in the hours before the announcement.
The market expects to reduce another price in October
Bitcoin (BTC) increased for a short period to $ 117,000 before announcing the reduction of the FBI, but has since declined to the levels seen in the previous days, trading it at $ 115,570 at the time of publication, according to CoinMarkcap.
CME data shows that market participants seek a chance of 91.9 % of reducing the 25 -year rate of October 29, with just 8.1 % that rates do not change.
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Federal reserve officials said they expect discounts in other quarter prices this year. However, Federal Reserve Chairman Jerome Powell said, “We are not on a prior road.”
Financial institutions in the Federal Movement were divided in September
Some financial institutions expected to reduce more aggressive prices at the September meeting, with Standard Chartard's prediction of reducing 50 basis points.
However, David Solomon, CEO of Goldman Sachs, was more confident that the Federal Reserve would be committed to reducing 25 basis points.
Low interest rates tend to be bullish of assets on risk, including cryptocurrencies, as traditional investments such as bonds and range deposits become less profitable for investors.
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