Surely the biggest topic of discussion when it comes to the price predictions of Crypto but also just any other financial asset has been the Federal Reserve and heir hawkish stance to increase rates to battle inflation and inflation is after a record-pace in rate hikes still at over 5% by the way… So the questions remain right now when they will finally lower their rates or pause and to whether that will actually help the prices go up.

I know it is all very very complex and at the end of the day markets may still do the opposite of what we expect, so here is a simply and summarised overview for the rest of the whole year.

Case 1: FED cuts rates

This is simple, rate cuts or a pause will cause stock markets to rally in the long-term even if as historically seen during the beginning of rate cuts markets tend to be more bearish. Stocks will rally and Crypto will be ready to follow up with a high correlation and also as the USD will be weakening even more than right now.

Case 2: FED raises rates

In a possible scenario where they realise that their rate hikes have been very ineffective and inflation is still too high or even increases further.

This will cause even further turmoil in the banking sector as we have seen with SVB as apparently they were all too busy to actually hedge against rate hikes that every Redditor saw from a mile away. Causing further banks to collapse, which on the other hand will make more people hedge in to Bitcoin and thus go up here too.

In conclusion, we can see that no matter what the FED does it will be good for Bitcoin and all of Crypto and we are now at a position where further rate cuts or fewer don‘t make any difference at all. So stop wasting your time to analyse what the FED may do next but go out on a hike or just chill. We are all set for a good show.