10x Research: The negative impact of the Fed's interest rate cut on the crypto market against the backdrop of a weak economy cannot be ignored

CoinDesk cited a report by 10x Research founder Markus Thielen that if the Fed cuts interest rates in September 2024 simply because of inflation concerns, this could be a short-term positive for Bitcoin. However, if economic growth concerns lead to rate cuts, whether in September or later, Bitcoin could face huge selling pressure. In addition, Wells Fargo Investment Institute strategists said that the arrival of the Fed's rate cut cycle often coincides with a sharp drop in the stock market. Since 1974, the stock market has fallen by an average of about 20% within 250 days of the Fed's first rate cut. This means that cryptocurrency traders should be alert to signs of a weak U.S. economy.