Famous Analyst: While FED Decision Pressures the US, It Triggers a Rise in Bitcoin! - Coin Bulletin

Koinbulteni · 2025-05-02T13:45:09+00:00

Experts believe that potential Fed interest rate cuts will support Bitcoin more than stocks following the first contraction in the US economy in three years. Economic data from the US strengthened expectations of a new rate reduction, influencing the rise of Bitcoin prices amidst slowing economy and stock market worries. Valentin Fournier noted the correlation between inflation nearing the Fed's 2% target and enhanced expectations of multiple interest rate cuts, potentially benefiting alternative investments like cryptocurrencies over stocks. Fournier highlighted increased Bitcoin ETF demand as indicative of a strategic shift towards direct response to Bitcoin price movements by investors.

Koinbulteni

2025-05-02 13:45:09

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With the contraction of the US economy for the first time in three years, experts believe that the Fed’s potential interest rate rebates will support Bitcoin more than (BTC) stocks.

The latest economic data from the US has strengthened expectations for a new interest rate cut in the markets. The country’s economy contracted for the first time in three years. Additionally, the Core Personal Consumption Expenditures (PCE) index, which the Fed closely monitors as an inflation indicator, decreased from 3% to 2.6% year-on-year, falling below expectations. These developments have increased the likelihood of the Fed lowering interest rates, accelerating the recent rise in Bitcoin prices.

The Head Analyst of the BRN Research Department, Valentin Fournier, commented on the situation in his latest analysis, stating, “The approach of inflation to the Fed’s 2% target strengthens expectations for multiple interest rate cuts.” According to Fournier, these interest rate cuts could benefit alternative investments like crypto assets by increasing liquidity in the market. Fournier noted that, unlike stocks negatively affected by the economic slowdown, Bitcoin is holding stronger in this environment.

ETF inflows are sensitive to price movements

Valentin Fournier recently attributed the increase in Bitcoin demand on Wall Street directly to price momentum. On May 1st, a total net inflow of 442 million dollars into Bitcoin ETFs occurred, while in the previous days this figure had been a 56 million dollar outflow. Fournier indicated that this data shows the end of strategic asset rotation and that investors are now acting according to direct Bitcoin price movements.

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