Bitcoin & Stocks in Sync 📈 – Fed Rate Cut Could Spark Dual
koinmilyoner
Updated at: 4 hours ago
{"content":"Bitcoin & Stocks in Sync 📈 – Fed Rate Cut Could Spark Dual Rally
Bitcoin may rise alongside the S&P 500 on Wednesday if the Fed cuts rates.
JPMorgan reported that when the Fed decreases rates during a rally, the S&P gains 15% the following year.
Bitcoin exchange inflows have dropped to 25,000 BTC, indicating investors are less likely to sell.
Bitcoin (BTC) may rise following its favorable association with the S&P 500 as market investors expect a 25-basis-point Federal Reserve rate drop on Wednesday.
Bitcoin may again correlate with S&P 500 as Fed rate decision approaches.
According to Kobeissi Letters, citing a JP Morgan research, the S&P 500 might rise 15% next year if the Fed cuts rates. Bitcoin and the crypto market may soar after a rate decrease boosts the S&P 500.
Historical trends show that rate reduction at record index highs were followed by solid 12-month performance, the bank said.
JPMorgan noted that the S&P 500's short-term performance in the first month after rate reduction is erratic, with equities down in 50% of cases.
Per the CME's FedWatch tool, market participants price in a 96% likelihood that the Fed will drop rates by 25 basis points on Wednesday.
"History says near-term volatility after Wednesday's rate cut will be a long-term buying opportunity," said JPMorgan.
Due to recent linkage with the equities market, Bitcoin may have favorable returns like the S&P 500.
Emergency Fed rate cuts in 2020 caused BTC to fall alongside the S&P 500 as investors fled to cash. Both assets rebounded quickly, with Bitcoin reaching fresh highs by year's conclusion.
Bitcoin surged 147% and the S&P 500 26% in 2023. The index rose 24% in 2024 while Bitcoin rose 135%.
Last week, spot Bitcoin exchange-traded funds (ETFs) in the US received $2.34 billion in net inflows, indicating strong mood ahead of the FOMC meeting.
#StrategyBTCPurchase #USBitcoinReserveDiscussion #FedRateCutExpectations #AltcoinSeasonComing? #Write2Earn $BTC $ETH $XRP ","images":["https://d2kdcqywr8ua22.cloudfront.net/uploadfile/article/blog/2025092025/09/17/c9356183b23c4efc9ced9ec3d82737a4.png"],"tags":[],"tradingPairs":["ETH/USDT"],"quotearticleid":0}