Bitcoin Gains Momentum as Fed Rate Cut Expectations Rise Amid Strong Macro Signals

By: en coinotag|2025/05/02 11:30:02
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COINOTAG reported on May 2nd that amidst fluctuating macroeconomic indicators, the discernible decrease in inflation rates has rekindled anticipations surrounding potential rate reductions by the Federal Reserve. Valentin Fournier , the Chief Research Analyst at BRN, emphasized that as inflation trends close in on the Fed’s 2% target, expectations for multiple rate cuts are gaining traction. This shift could catalyze a significant boost in liquidity, providing a favorable backdrop for cryptocurrencies compared to traditional stocks, which might be adversely affected by economic deceleration. Mike Cahill , CEO of Douro Labs, highlighted the critical role of the upcoming U.S. jobs report, which encompasses non-farm employment and wage growth data, in shaping the Fed’s monetary policy. Recent statistics revealed a mere 62,000 job additions in April, trailing behind March figures. Cahill remarked that if the forthcoming report indicates a similar weakness, combined with heightening expectations for rate cuts, the price trajectory of Bitcoin could ascend. Institutions are now vigilantly observing these macroeconomic indicators, recognizing Bitcoin not merely as a risk asset but increasingly as a macroeconomic tool for interest rate sensitivity and facilitating global transactions, echoing its original purpose.

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