TechFlow news, according to Coindesk, 10x Research believes that if the Federal Reserve cuts interest rates by 50 basis points (bps) on September 18, the previously bullish liquidity-easing cycle could negatively impact risk assets including cryptocurrencies.
A 50 bps rate cut typically signals urgency in controlling inflation and triggers risk-averse sentiment across financial markets. A 50 bps cut next week might indicate heightened concerns about the economy or a sense of falling behind in应对 an upcoming economic slowdown, potentially prompting investors to reduce their exposure to risk assets such as Bitcoin (BTC) and equities.
Markus Thielen, founder of 10x Research, said in a report: "Although a 50 bps Fed rate cut may imply greater market concern, the Fed's primary focus will be on mitigating economic risks rather than managing market reactions."
