Crypto Market Outlook

A large interest rate cut by the United States Federal Reserve would be better for risk assets and the crypto markets, says the chief of a crypto hedge fund. Asymmetric founder and CEO Joe McCann says it's a "coin flip" on whether the Fed will cut rates by 25 or 50 basis points on September 18.

Fed Rate Cut Impact

McCann says a lower 25 basis point cut could be bad for crypto markets, but if the Fed cuts 50 basis points it would likely be positive for risk assets like crypto. Gemini's head of Asia Pacific, Saad Ahmed, believes the markets may have already priced in the rate cut, but a larger 50 bps cut could influence a breakout.

Historical Precedent

McCann disputed the notion that a 50 bps cut would be bearish, noting that the last few times the Fed cut rates were during emergencies like the 2008 financial crisis, the dot-com bubble, and the 1987 Black Monday crash.

Source: https://cointelegraph.com/news/50-bps-fed-rate-cut-bullish-crypto-markets

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