Summary
- September 2024 was the 4th biggest month for central bank policy rate cuts this century.
- In 2020, when global central banks cut interest rates at high levels, Bitcoin debuted a huge rally.
Central banks all over the world have kicked off a significant interest rate cut policy, with market analysts highlighting the effects on future Bitcoin price trajectory.
September 2024 – 4th Biggest Month for Central Bank Policy Rate Cuts of the Century
In a post on X today, Apollo Sats fo-founder, Thomas Fahrer, highlights the latest rate-cutting spree of the global central banks.
He shared a Bloomberg graph, revealing that September 2024 was the 4th-biggest month for central bank policy rate cuts this century.
Other notable periods in which central banks around the world cut interest rates at such levels included March 2020 following the pandemic debut, and December 2008 – March 2009 – both these times marking huge crises for the world.
In an October 17 article, the Reuters press agency noted that seven of the 10 big developed-market central banks tracked by them have begun easing policy.
In their analysis, they mentioned the US, the UK, New Zealand, Norway, Australia, Canada, Sweden, Switzerland, Japan and the Euro Zone.
The most recent rate cut event in the world was in March 2020, when banks cut interest rates as a response to the debut of the covid pandemic.
As Fahrer noted in his post, it’s worth watching Bitcoin’s price in the near future, considering that the 2020 rate cuts, preceded a significant BTC rally.
Bitcoin Could Debut A Huge Price Rally
Based on history, Bitcoin could debut a massive price rally amidst the global central banks’ rate cuts. In March 2020, BTC began a price rally from around the $5,000 levels, surpassing $64,000, by the end of 2021.
This year, Bitcoin’s rally is fueled by more catalysts apart from notable rate cuts, including the impressive performance of Bitcoin ETFs in the US, the approaching elections in November, and rising chances for a Trump win, and whales’ significant accumulation at 2020 levels.
BTC whales have been accumulating at a record pace that hasn’t been seen since Q4 2020, right before BTC skyrocketed.
At the moment of writing this article, BTC is trading above $68,000, after kicking off an impressive rally on October 14.