In a recent deep dive, Aaron & Austin Arnold shared their insights with the CoinSpeech team, who have gathered the main points for this article. Aaron & Austin Arnold’s new video can be found below.
Rate Cuts on the Horizon
The Federal Reserve’s potential rate cuts are likely to be “super obvious” in the coming months, signaling big changes for the crypto market. The past 30 days have already seen nearly 100,000 Bitcoin being taken off exchanges, with figures such as 54,000 from Kraken and 25,000 from Coinbase. With Ethereum hitting an 8-year low on exchanges, and almost 5% of the entire Bitcoin supply being scooped up by ETFs, BTC’s value is set to surge dramatically.
Fed Meeting: What to Expect
As the Federal Reserve’s meeting approaches, the odds for a rate cut still loom. While the likelihood of a June or July rate cut remains low, investors see a 50.5% chance of a quarter rate cut by the September 17th-18th meeting, and a 64.4% chance by the November 6th-7th meeting. “The US markets are about to be blindsided by Fed rate cuts happening one after another as we get towards the end of the year,” the speakers predicted.
Why the Rate Cuts Matter
Rate cuts are significant because they will free up more capital to flow into Bitcoin and other risk assets. With the economic weakening shown by slowing housing markets and declining new mortgage applications, the Federal Reserve may cut rates to revitalize economic growth. “Jobs are created in the United States by small businesses, and 60% of the small businesses are tied to US housing,” Austin Arnold emphasized.
Institutional Investment and ETFs
With the “most successful launch of an ETF” in history, more than one million Bitcoin have been accumulated by major financial players like BlackRock and Fidelity. As institutional interest grows, the floodgates for Bitcoin adoption are opening. “Bitcoin as a savings technology to the world” is no longer just a speculative trade but a strategic asset in long-term portfolios, placing it alongside real estate and gold.
Upcoming Bitcoin Trends
Given these trends, Bitcoin is forecasted to surpass $100,000 by the end of the year. “Combine Fed rate cuts with high institutional demand, and we are in for a massive bull run,” opines Arnold. This sentiment is echoed by Anthony Scaramucci, who noted, “Prepare for this; this is going to pump Bitcoin over 100K and altcoins a lot higher.”