Fed pivot is arriving this September. Probabilities favor a rate cut when the Fed meets on Sep 18, 2024.
What happens to SP500, Bitcoin & Gold if the Fed rate cut arrives?
1. SP500
SP500 crashed when a rate cut happened in 2000, 2007, and 2019.
2. Bitcoin
Bitcoin crashed when a rate cut happened in 2019.
3. Gold
Gold crashed when a rate cut happened in 1989, 1995,
Gold rallied when a rate cut happened in 2000, 2007, and 2019.
Now what happens in September?
Based on these charts, SP500 is highly likely to crash when the Fed cuts the rate. But since Bitcoin & Gold are considered “hedging assets”, we can compare $BTC more closely to Gold. And both are likely to rally by the end of September with a Fed rate cut.
What do you think? Will $BTC crash like in 2019 or align with Gold by rallying up?
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