Goldman Sachs Forecasts First Fed Interest Rate Cut in Q3 2024
Banking giant Goldman Sachs predicts that the Federal Reserve will announce two interest rate cuts in the United States in 2024, with the first cut expected in the third quarter. This forecast comes after Goldman Sachs previously predicted rate hikes due to cooling inflation but now believes that inflation cuts may come later.
Crypto Market Reaction to Rate Cuts
In response to this forecast, the crypto market has experienced a bullish drive, with top assets like Bitcoin and Ethereum reaching yearly highs. Traditionally, rate hikes dampen market growth, while rate cuts make borrowing easier and stimulate investment. Therefore, a rate cut announcement by the Federal Reserve could lead to an influx of funds into the crypto market.
Bulls Taking Control?
The recent surge in Bitcoin prices, surpassing $41,000, indicates renewed bullish sentiment in the market. Institutional investors are also showing increased interest, with expectations of a spot Bitcoin ETF approval by the SEC. With a rising total assets under management (AUM) over $45 billion, analysts believe that the market is poised for further growth.
Hot Take: Crypto Markets Poised for Growth Following Fed Rate Cuts
The prediction of an interest rate cut by Goldman Sachs has sparked optimism in the crypto markets. If the Federal Reserve indeed announces rate cuts in 2024 as projected, it could lead to increased investment and a surge in asset prices. This positive sentiment is fueled by the recent bullish drive and institutional investor interest. As such, many crypto enthusiasts are hopeful that these rate cuts will contribute to sustained market growth in the coming years.
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