The crypto community has been pumped since the FED announced interest rate cuts. Many analysts expect that this increases Bitcoin’s bullish case.
With the interest rate cut, the dollar will be more accessible and cheap. This could trigger a dollar sell-off. As its value drops, that of commodities especially safe havens and or risk assets like Bitcoin and gold will rise. or will it?
One analyst has been warning that this time it’s different. Traders must be careful with that on top of the interest cuts, there are a number of other events to account for.
No One Is Sure What Is Coming: Analyst
In the U.S, there are a number of big events coming. This add ons make it nearly impossible to tell what to expect from the economy. One of these is the presidential elections.
This is set for a later year and the winner is set to push the economy to a certain course. Of course, the incumbent Donald Trump has made it clear he wants more easing and interest cuts.
Elizabeth Warren has on her part said she wants to enact a $400 billion fiscal stimulus package.
All these packages are designed to stimulate the economy which suffering a slow down due to the Coronavirus outbreak in the country and around the world. Notably, most analysts have been critical of the FED for cutting rates preemptively and without knowing the full economic impact of the outbreak.
There is also the issue of the China-US trade war. Despite these two economies being on their knees, the Trump administration has made it clear that the tariffs will stay in place until there is a deal. This will continue hanging over investors’ heads.
On top of external reasons, Bitcoin is also set for a major event in a couple of weeks. The Bitcoin halving set for every four years is a few months away. This event sets a major bullish scenario.
All these things put together in a couple of months and one analyst thinks that this year will be different.
One of these reasons in play is enough to see Bitcoin soar. All together and there is no telling if this is the year we see a new all-time high. The analysts, however, warns that these scenarios do not only set the markets for upward movement, but it could also go either way.