{"id":20625,"date":"2024-05-16T12:00:41","date_gmt":"2024-05-16T12:00:41","guid":{"rendered":"https:\/\/coinengineer.io\/?p=20625"},"modified":"2024-05-16T07:44:08","modified_gmt":"2024-05-16T07:44:08","slug":"global-central-banks-signal-rate-cuts-boosting-bitcoin-and-risk-assets","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/global-central-banks-signal-rate-cuts-boosting-bitcoin-and-risk-assets\/","title":{"rendered":"Global Central Banks Signal Rate Cuts, Boosting Bitcoin and Risk Assets"},"content":{"rendered":"<p>Interestingly, <strong>Bitcoin (BTC)<\/strong> is moving upward over 7% while most assets are taking a change. The cryptocurrency market was highly volatile on Wednesday with its price increased by 5% to reach the highest level since March 19. This decision was triggered by the weaker than expected US data published last week, which emboldened the <strong>Fed<\/strong> to cut its rate in September. Bitcoin&#8217;s activity this month also highlights how much volatility risk assets could experience given the economic uncertainty and prospect of rate hikes.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/global-central-banks-signal-rate-cuts-boosting-bitcoin-and-risk-assets\/#Economic_Data_Strengthens_Case_for_Fed_Cut\" title=\"Economic Data Strengthens Case for Fed Cut\">Economic Data Strengthens Case for Fed Cut<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/global-central-banks-signal-rate-cuts-boosting-bitcoin-and-risk-assets\/#Global_Trend_of_Rate_Cuts\" title=\"Global Trend of Rate Cuts\">Global Trend of Rate Cuts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/global-central-banks-signal-rate-cuts-boosting-bitcoin-and-risk-assets\/#Positive_Outlook_for_Risk_Assets\" title=\"Positive Outlook for Risk Assets\">Positive Outlook for Risk Assets<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_Strengthens_Case_for_Fed_Cut\"><\/span>Economic Data Strengthens Case for Fed Cut<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The Labor Department of America<\/strong> provided the data on the consumer price index (CPI) that grew at a rate of 0. 3% drop in just one month of February and, less than 3% in April, overshooting forecasts. The community has witnessed a decline after an initial rise of the new people. <strong>The CPI (Consumer Price Index)<\/strong> posted a 0.4% increase in both March and February matching the slowdown in inflation.<\/p>\n<p>On the market data side, retail sales for the month of April were not any average; the crucial \u2018control group\u2019 category which is used for GDP calculations went down by 0.3%. undefined The prognosticators bear the responsibility for these indicators&#8217; shifting investor expectations in a pretty major way, with the fed funds futures market now signaling more than 80 percent probability of an upcoming 25 basis point rate cut.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Trend_of_Rate_Cuts\"><\/span>Global Trend of Rate Cuts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The fact is that the Federal Reserve was not the only economic body to shift to dovish stance.<\/strong> The market expects the <strong>Bank of England (BOE)<\/strong> and E<strong>uropean Central Bank (ECB)<\/strong> to do so a month later, after the <strong>Swiss National Bank (SNB)<\/strong> and Riksbanken in Sweden did the same. The information from Macro Micro povs that there is a growing graph of the net percentage of central banks cutting rates.<\/p>\n<p>&#8216;MacroMicro explained, the higher the quotient&#8217;s values get, the more central banks reduce the rate at which interest is charged, which helps to ease the condition of market liquidity. On the contrary, as the quotient declines, the market becomes financially tight.&#8217;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Positive_Outlook_for_Risk_Assets\"><\/span>Positive Outlook for Risk Assets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The liquidity easing switch is , and that is a good development for cryptocurrencies, risk assests. Investors feeling bullish about <a href=\"https:\/\/coinengineer.net\/blog\/btc-e-co-founder-pleads-guilty-to-laundering-9-billions-in-bitcoin\/\">BTC<\/a>, which resulted in a rally of the cryptocurrency reaching $66,250 in just one week ago, is displaying optimism for future price movements. Given the fact that many central banks are taking steps to loosen monetary policy, the overall costs of borrowing fiat money is forecasted to become lower and thus an environment with higher risk appetite.<\/p>\n<p>Investors are therefore advised to maintain exposure to equities and other risky assets since the likelihood of this trend persisting through the summer months is high. Pepperstone broking firm believed equity market participants &#8220;to settle for a more riskier place since the good news for liquidity easing may go on.&#8221;<\/p>\n<p>Generally speaking, the increasing number of central banks with tighter monetary policies denotes a prospect of favorable developments in risk assets. Bitcoin&#8217;s recent climb is a proof of this approach in action by the markets&#8217; adjustments under the assumption of the forthcoming monetary easing. As time goes along, this type of setting is probably going to sustain pro-risk assets, which will help reinforce the investor confidence and liquidity of the market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Interestingly, Bitcoin (BTC) is moving upward over 7% while most assets are taking a change. The cryptocurrency market was highly volatile on Wednesday with its price increased by 5% to reach the highest level since March 19. This decision was triggered by the weaker than expected US data published last week, which emboldened the Fed<\/p>\n","protected":false},"author":6,"featured_media":20627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,10,1],"tags":[640,6166,1180],"class_list":["post-20625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-economy-news","category-genel","tag-fed","tag-global-central-banks","tag-inflation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Global Central Banks Signal Rate Cuts, Boosting Bitcoin and Risk Assets - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Bitcoin surged over 7.5% amid expectations of global central bank rate cuts. 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