xavierastella
@xavierastella
In a scenario where the Federal Reserve cuts interest rates by 50 basis points, the correlation between the US dollar index and Bitcoin may evolve. Historically, rate cuts have led to a weaker dollar, which can drive investors towards alternative assets like Bitcoin, increasing its price. However, if the rate cut signals economic distress, risk aversion may prevail, and Bitcoin could face selling pressure. Monitoring the dollar index, inflation data, and market sentiment will be crucial in predicting the direction of Bitcoin's price in response to such monetary policy changes.
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