Stocks and crypto await Fed Reserve decision

Bitcoin and the stock markets are in waiting mode apparently, awaiting the wise words of Federal Reserve Chairman Jay Powell. He’ll let everyone know tomorrow whether he’s finally ready to lower US interest rates. If that happens, everything could move higher again for a few weeks. After a mild start to the month, it appears the stock markets and crypto markets are gearing up for a new rally.

Three rate cuts

As always, the devil is in the details. Although the first rate cut is likely already factored into the markets and Bitcoin’s price (about 95% of Wall Street traders believe Powell has no other choice), it will depend on how many future rate cuts the Fed announces on Wednesday, and whether they happen before the end of the year.

Investors are hoping the US central bank will announce three consecutive rate cuts, especially now that the local labour market is slowing. But with Powell, you never know. He’s been able to withstand pressure from the White House for months, so it’s always possible he’ll rebel one last time (his term as Federal Reserve chairman ends early next year).

Meanwhile, Bitcoin continues to do very well, especially considering the fact that we’re in September, historically a very weak month for crypto. But this year everything seems to be working out. At the time of writing, the largest digital currency is trading for $115,000.