Part of what is going on right now at the moment is that traders are starting to look at the idea of the Federal Reserve cutting rates as perhaps driving down the value of the dollar, perhaps bringing loose money back into the picture, and that helps Bitcoin. I think they’re going to be somewhat disappointed. Yes, I think the Fed cuts, but I think they cut extraordinarily slowly. So, I’m going to say something that a lot of people don’t want to hear.
I suspect Bitcoin goes higher in Q3, but I don’t think it’s a runaway freight trade. We will probably get a quick knee-jerk reaction to the initial cut, but then people typically, once the Federal Reserve starts cutting, start asking questions as to why they might be cutting. This is something that a lot of people don’t really pay attention to, the fact that not all cuts are good. Perhaps they see something we don’t.
But really at this point, pay attention to the idea of loose money helping Bitcoin. But I do think it’s going to be a rocky move higher. I think it’s going to be more of a grind. There will probably be one impulsive move. We seem to get one every quarter. But the rest of it’s probably just going to be a gradual institutional led grind higher.
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