Risk Assets Like Bitcoin Are Defying Low Fed Rate Cut Expectations: Analyst
Summary
Bitcoin experienced a moderate drop from $50,000 to around $48,800 following the release of the U.S. consumer price index report for January, which indicated higher-than-expected inflation. This led to traders pushing back the expected timing of the first rate cut to July. However, the dip was short-lived, with prices stabilizing around $49,500. Despite this, risk assets like Bitcoin are performing well, according to Truflation. A Polymarket contract predicts a 59% chance that Bitcoin will reach a new all-time high in 2024, and a 66% chance that Bitcoin will hit an all-time high before Ethereum. Truflation suggests that markets may have accepted that higher interest rates are here to stay.
