BlackRock and BofA on Fed Rate Cuts
A senior macro investment strategist at BlackRock, Laura Cooper, stated in an interview that the US Federal Reserve will not initiate rate cuts in March as previously expected. Cooper believes that the recent retail sales data indicates the resilience of the US economy, which could lead to a delay in rate cuts. However, she predicts that the Fed will start cutting interest rates in June, earlier than the European Central Bank. Cooper anticipates that the Fed will eventually cut rates by 75-100 basis points by the end of the year.
Bitcoin Rally After Bitcoin Halving
Bank of America and other analysts have also reported a delay in Fed rate cuts until the third quarter. Additionally, Federal Reserve officials who favor tighter monetary policies have pushed back on aggressive easing bets, reducing expectations of a rate cut in March. Furthermore, recent data shows a decline in initial jobless claims, suggesting a strong US economy. Cooper also expects a strong US dollar this year, which could hinder Bitcoin’s rally following the Bitcoin halving event. The strengthening US dollar has put selling pressure on Bitcoin.
Hot Take: BlackRock’s Impact on Bitcoin Rally?
The predictions made by BlackRock regarding the delay in rate cuts and a potentially stronger US dollar could impact Bitcoin’s rally after the Bitcoin halving event. With rate cuts postponed and a resilient US economy, investors may be less inclined to turn to cryptocurrencies as an alternative investment. Moreover, a stronger US dollar can create selling pressure on Bitcoin as it becomes more expensive for international investors. These factors highlight the importance of monitoring macroeconomic trends and their potential effects on cryptocurrency markets.
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