Michaël van de Poppe, a well-known cryptocurrency analyst, says there is a beginning of a bull market after the Federal Reserve's recent decision to cut interest rates.
What Happened: According to his post, van de Poppe is bullish on Bitcoin BTC/USD, Ethereum ETH/USD, and decentralized finance (DeFi). He stated, “The bull market has started. Long #Bitcoin. Long #Ethereum. Long DeFi.”
In another post, van de Poppe elaborated on the recent Federal Open Market Committee meeting, highlighting a significant 50 basis points rate cut. He mentioned that the dot plot suggests additional rate cuts of 50-75 basis points in the coming months, which he views as bullish for cryptocurrencies.
Van de Poppe also noted that the FOMC does not anticipate a significant rise in unemployment, which he believes is crucial for market stability.
However, he expressed skepticism about the FOMC’s outlook, predicting a reduction in labor markets and a substantial economic impact that would necessitate quantitative easing to sustain economic momentum.
“I think they have a wrong view, I suspect that there will be a reduction in the labor markets and a huge impact on the economy, through which QE is required to keep the economy moving forward,” wrote van de Poppe.
See Also: Mark Cuban Slams Trump’s Crypto Plans While Jon Stewart Calls Him ‘The Left’s Favorite Billionaire’
Why It Matters: The announcement from van de Poppe comes on the heels of significant developments in the cryptocurrency market. On Wednesday, Bitcoin surged past the $61,000 mark following the Federal Reserve’s announcement of a 50 basis point rate cut, bringing the federal funds rate down to a range of 4.75% to 5%.
Additionally, the Federal Reserve’s decision to cut rates was widely anticipated, with an 85% likelihood leading up to the announcement. This anticipation led to a bullish reaction in both cryptocurrency and traditional equity markets. However, prices quickly reversed as traders executed buy orders.
Former President Donald Trump also made headlines by using Bitcoin to pay for smash burgers and Diet Cokes during a campaign stop in New York City. This move was hailed as “one of the most historic transactions” and aimed to bolster his support from the crypto community.
Price Action: Bitcoin is currently trading at $62,017.60, up 0.59% in the last 24 hours. Year to date, it has gained 40.30%. Meanwhile, Ether is currently priced at $2,357, rising 2.63% in the last 24 hours. Year to date, it has increased 0.19%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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