Bitcoin Bulls Rejoice: Galaxy Digital CEO Believes Fed Rate Cut Will Benefit BTC |

Bitcoin, the largest cryptocurrency asset could see a significant rise in the coming months as Mike Novogratz, the Chief Executive Officer (CEO) of Galaxy Digital foresees BTC to benefit substantially from the anticipated Federal Reserve cut rates this year.

Fed Cut Rate, A Great Set Up For Bitcoin

The Federal Reserve has been indicating since December last year that it plans to lower its benchmark interest rate this year by the amount of three-quarter points, from the current range of 5.25 to 5.5%.

How To Get Free Crypto  

However, policymakers adopted language the following month indicating that they would maintain the policy rate in the current aforementioned range until they have “greater confidence” that inflation will reach the Fed’s target of 2%.

In 2024, the markets are pricing in two quarter-point rate cuts by the Fed and a 50% chance of a third, which is a significant reversal from the beginning of the year when six to seven cuts were anticipated.

Over the past several months, expectations concerning the extent and timing of the Fed’s rate reduction have rapidly changed. Investors are gradually losing faith in policymakers’ ability to reduce borrowing costs without inciting an inflationary resurgence in a robust economy.

Sharing his insights on the subject, Mike Novogratz voiced worry about the effects on the United States economy and several assets. Even though Novogratz cannot think of a single compelling reason why the Fed should lower rates, he is confident they will still go ahead with it. 

Coinbase Banner  

Thus, he has stressed the urgent need for a politician who will take serious action and drastically reduce expenditure, drawing attention to Washington, DC’s glaring silence on the subject.

While Novogratz highlights that the development will pave a terrible setup for the US, he believes it will benefit several precious assets such as Bitcoin, Gold, and Silver.

The CEO’s summary of how a rate decrease will help Bitcoin and precious metals reflects a systematic approach to asset diversification and risk management in a monetary easing ecosystem. Those who prioritize Novogratz’s research may now view this as a favorable time to realign their portfolios and increase their holdings in assets that tend to gain from changes in monetary policy. 

BTC Price Poised For Growth Amid Rate Reduction

Novogratz’s overview aligns with Lark Davis’, a popular cryptocurrency analyst insights, who also believes the event could impact the price of Bitcoin significantly, suggesting an optimistic year for the crypto asset.

FreeBitcoin Banner  

Considering Goldman Sachs’s prediction on the terminal interest rates, Davis affirms that these cuts will improve market liquidity and motivate investors to invest more money in digital assets like Bitcoin, thereby propelling its price.

Goldman Sachs predicts there will be three rate reductions; the first is slated for June, and the range of terminal interest rates is expected to be between 3.25 and 3.5%.

BTC trading at $70,635 on the 1D chart | Source: BTCUSDT on

Featured image from iStock, chart from

Go to Source
Author: Godspower Owie

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.