1 min readAre rate cuts and Spot Bitcoin ETF approval looming?
CPI on Tuesday came in as expected at 3.1% year over year, with core also in line at 0.3% month over month. The FOMC decision on Wednesday kept the upper fed funds rate target at 5.5%, again, in line with what was anticipated; this, however, came with a dovish surprise that excited markets.
A decisive change in the dot plot shows that the median FOMC participant now sees 75 basis points of cuts in 2024. This shift animated risk markets across the board, lifting major indices, as well as Bitcoin and other major cryptocurrencies. The FED has essentially signalled the end of the tightening cycle, with yields across the board falling and the dollar weakening; two factors we see distinctly supportive for Bitcoin prices.
Four different issuers have met with the SEC over the last week regarding their Bitcoin Spot ETF filings. Notably, with the presence of both the Division of Trading & Markets, as well as the Division of Corporate Finance; two divisions that ultimately decide if and when 19b-4’s and S-1’s would be approved or denied. These developments are constructive signals that conversations are moving towards probable approval.
