While the FED interest rate conundrum continues in the Bitcoin and cryptocurrency markets, the first interest rate cut in September is almost certain.
While the focus is on how many basis points the rate cut will be, QCP Capital said the market is preparing for a possible Fed rate cut ahead of next week's nonfarm payrolls data.
Singapore-based crypto trading firm QCP Capital stated in its daily market analysis that Bitcoin and the market are preparing for a possible FED rate cut and that the downtrend in cryptocurrencies is likely to continue.
At this point, QCP analysts stated that the declines will continue in September and said that Nvidia's earnings report last night triggered a classic “sell the news” event in crypto markets today.
Analysts said that risk reversals dating back to October are still selling in both Bitcoin and Ethereum, indicating that the market remains cautious about further downside movement.
“Nvidia's impressive earnings report last night triggered a classic “sell the news” reaction in crypto markets today. As a result, Bitcoin has fallen to $59,000 and Ethereum is trading sluggishly around $2,500.
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“With little positive momentum in the short term, we expect declines to continue through September as the market positions itself for possible Fed rate cuts in preparation for next week's nonfarm payrolls report.”
*This is not investment advice.