Summary
- In the wake of global markets’ recent decline, the Fed is expected to cut interest rates.
- Odds of an emergency Fed rate cut this week reach 60%.
According to the latest reports, we might see the US Fed cutting interest rates sooner than expected.
The Kobeissi Letter shared in a new post on X today that Elon Musk is saying the Fed needs to drop rates.
According to the tech mogul, as cited by the global capital markets platform via their post, the Fed has been foolish for not having done this by now.
They note that the odds of an emergency Fed rate cut this week jumped to 60%, and Musk has been calling for this move for a long time now.
It’s also worth noting that CNBC Crypto Trader’s Ran Neuner said in his post on X today that the market’s decline was mainly triggered by the reversal of Japanese carry trade.
He highlighted that the US Fed needs to reach fast in order to avoid a meltdown that would make 2008 look like a joke.
According to him, since we are in an election year, we might expect some emergency actions coming from the US Federal Reserve.
Wave of Collapses Across Equity and Crypto Markets
A strong wave of financial collapse in multiple markets has been seen across the world in the past hours, with some traders hinting at a potential Black Swan event.
Scott Melker, aka The Wolf of all Streets, posted a message via his X account saying that in a Black Swan type of event, all correlations are going to a single one:
All correlations go to one in a black swan event.
The question then becomes – where do you want to be when things bottom?
In March 2020 Bitcoin bottomed and then… pulled a 17x to the upside while stocks doubled.
— The Wolf Of All Streets (@scottmelker) August 5, 2024
After seeing a drop in price below $50,000 earlier today, at the moment of writing this article, BTC is trading above the important mark.
While some crypto traders are showing extreme fears, Bitcoiners know that this is the time to accumulate coins.