BTC Bull Run Hangs in the Balance as Fed Rate Hike Looms

BTC Bull Run Hangs in the Balance as Fed Rate Hike Looms

Benjamin Cowen, a prominent cryptocurrency analyst, predicts that Bitcoin's (BTC) recovery hinges on a significant shift in the Federal Reserve's (Fed) monetary policy. Cowen believes that BTC's bullish momentum will remain elusive until the Fed slashes its benchmark interest rate by 75 basis points or more. According to Cowen, if the Fed continues to raise interest rates aggressively, the current bearish trend for BTC may persist. However, if the central bank changes course and starts cutting rates by the end of this year, it could provide a catalyst for a crypto market rally early next year. The Fed's monetary policy decisions have a significant impact on the cryptocurrency market, as they affect the overall risk appetite and investment sentiment. Higher interest rates tend to discourage investors from taking risks, while lower rates can make risky assets like cryptocurrencies more attractive. Currently, the Fed is pursuing an aggressive interest rate hiking cycle to combat soaring inflation. However, there are growing concerns that the central bank's actions may lead to an economic slowdown or even a recession. If the Fed is forced to pivot to a more dovish stance, it could provide a tailwind for BTC and the broader crypto market.