💸 Rate Cuts Ahead! Crypto’s Catwalk to Success? 🚀

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Oh, darling! The whispers from Goldman Sachs are simply *too* thrilling to ignore! It appears their crystal ball is foreseeing a Federal Reserve policy that could send the crypto market into a delightful tizzy! 🤩

According to the esteemed Wu Blockchain, who’s been sipping tea with WSJ’s Nick Timiraos, Goldman Sachs has given its inflation outlook a bit of a facelift. They’re now expecting the core PCE index to sashay up to 3.5% this year, a full half percentage point higher than their previous estimate, sweetie! To counter the potential economic hangover, Goldman Sachs predicts the Fed will slash interest rates not once, not twice, but *three* times in the latter half of 2024. Scandalous! 📉

Goldman now expects core PCE to rise to 3.5% this year versus 3.0% under previous assumptions for less aggressive tariffs. They expect the Fed to cut three times in the second half of the year to address the hit to growth and employment

— Wu Blockchain (@WuBlockchain) March 31, 2025 📅

Now, recall the Federal Reserve’s March meeting, where they decided to keep the benchmark interest rates as steady as a seasoned socialite’s smile. However, they did hint at further reductions later this year, because, darling, one must always keep the economy on its toes! Fed officials projected a combined half-percentage point of rate cuts in 2025, implying two rate cuts. How…quaint. 🙃

This week promises to be a whirlwind of data releases, with labor market reports stealing the spotlight. And, of course, the inimitable Federal Reserve Chairman Jerome Powell will be giving a speech on Friday, which the markets will be watching with bated breath, no doubt. 🎤

The Crypto Tea Leaves 🍵

Despite the macroeconomic uncertainty being as clear as mud, Goldman Sachs’ prediction of three rate cuts could be the crypto market’s new best friend, potentially sending prices on a merry chase upwards in the coming months! 🚀

Historically, rate cuts have been the cat’s pajamas for risk assets like cryptocurrencies. With borrowing costs lower than a debutante’s neckline, more capital might just waltz into the crypto market, increasing buying pressure. For now, analysts expect macroeconomic triggers to be the life of the party, without a crypto-specific catalyst to speak of. 🎉

As of this writing, Bitcoin was down 1.81% in the previous 24 hours, languishing at $81,985 during the early Asian-market hours on Monday. The weekend dip, it seems, has left major tokens feeling a bit…deflated after last week’s brief, shining moment. 🌫️

XRP and Cardano‘s ADA were the biggest losers among the majors, dropping over 7% in the last 24 hours, while Solana’s SOL, Dogecoin (DOGE), and Ethereum (ETH) fell by a more modest 2% to 3%. Poor dears! 😔

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2025-03-31 15:56