Recommended

Crypto Deposit Make instant crypto transfers to your futures account
USDT-M Perpetual Futures Trade futures contracts settled in USDT
VIP Fee Discounts Enjoy different fee discounts based on your VIP level
Coin-M Perpetual Futures Trade futures contracts settled in cryptocurrency
Fiat Deposit Buy your favourite coins in seconds
Affiliates Invite friends & get rewarded
Convert Covert your crypto instantly
Support Centre Find our FAQs here
Announcements Find all our official announcements
BTCC Academy Learn about blockchain and crypto
News The latest trends in the crypto market

Promotions

Referral
Campaigns
Assets
Crypto Deposit
Fiat Deposit
Convert
Transfer
Withdraw
My vouchers
Fund history
Dashboard
Account Security
Identity verification
API Management
Transaction Report
Log out
register
BTCC / News / Market Updates /
Will the Fed Cut Interest Rates to Prevent a US Recession and Economic Chaos?

Will the Fed Cut Interest Rates to Prevent a US Recession and Economic Chaos?

Written by W, Leah
Last updated: 2024-08-12
Why Trust BTCC
BTCC, a seasoned player in the cryptocurrency sector, has established a solid foundation of credibility through its over a decade of platform operation and profound industry experience. The platform boasts an experienced team of professional analysts who leverage their keen market insights and profound understanding of blockchain technology to offer precise market analyses and investment strategies to users. Furthermore, BTCC adheres to rigorous editorial standards, ensuring that every report and analysis is fact-based, striving for objectivity and fairness, thus providing investors with authoritative insights they can rely on. In the rapidly evolving cryptocurrency market, BTCC stands out as an indispensable partner for numerous investors and enthusiasts due to its stability, professionalism, and forward-thinking approach.

The US recession scare is intensifying, fueled by escalating stock market volatility. Over the past month, most stocks have suffered significant losses, and the economic data released in recent weeks has done little to bolster market stability.

As the economy teeters on the brink, the question looming large is whether the Federal Reserve will intervene to avert a crisis. Will the Feds step in to steady the ship, or will the markets be left to weather the storm? The odds may not be in the economy’s favor, but all eyes are on the Fed’s next move.

US Recession Odds Rise: Key Factors Explained

An earlier assessment by market analyst Game of Trades illuminated significant trends signaling an imminent economic downturn. Firstly, the S&P 500 index is poised for a substantial correction following nearly a year of robust gains, which have propelled leading firms to unprecedented heights amidst sky-high valuations.

Mirroring the stock market’s dynamics, the digital asset ecosystem, including Bitcoin (BTC), may experience similar adjustments, given its correlation with traditional markets. The looming potential for a simultaneous stock and cryptocurrency market sell-off is further underpinned by trends in the yield curve, which Game of Trades highlights as steeply inverted, hinting at a possible US recession.
Moreover, the Shiller PE Ratio, a gauge of market valuation over the past 150 years, has reached its zenith, underscoring the overvaluation of the stock market. This is evident in the soaring valuations of companies like NVIDIA, which recently surpassed $3 trillion, and MicroStrategy’s robust growth performance.

Lastly, the VIX Chart, a barometer of market volatility, is indicating heightened uncertainty and could prompt the Federal Reserve to intervene swiftly with an emergency interest rate cut.

＼Trade On BTCC With 10 FREE USDT!／

Sign Up To Receive Up To 10,055 USDT DEPOSIT BONUS

Investors Can Plan Ahead

Recessions are a recurrent phenomenon in many advanced economies, and experts view any potential US recession as a necessary and long-awaited economic reset, particularly given its status as the world’s largest financial market.

Amidst concerns over potential market turbulence, there is a heightened expectation for the Federal Reserve to take decisive action. However, some companies, such as MicroStrategy, are taking proactive measures by investing in viable hedges against the depreciation of fiat currencies. MicroStrategy has chosen Bitcoin as its preferred hedging instrument, while other investors prefer gold.

While direct investment in Bitcoin through spot ETFs is not yet legally permitted in the US, efforts to promote Bitcoin adoption continue. Notably, Morgan Stanley has enabled its brokers to trade Bitcoin-related products, and there are reports that Wells Fargo is also exploring the possibility of launching a Bitcoin ETF. These developments signify a growing acceptance and integration of digital assets into traditional financial systems.

＼Trade On BTCC With 10 FREE USDT!／

Sign Up To Receive Up To 10,055 USDT DEPOSIT BONUS
Fed Fed Rate Cut US recession US Recession Odds Rise Will the Fed Cut Interest Rates to Prevent a US Recession and Economic Chaos

Register now to begin your crypto journey

Download the BTCC app via App Store or Google Play

Scan to download

Related articles

Exchange for a better future

Products
Services
Guides
About Us
Terms & Agreement
Customer Service

Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

The world’s longest-running cryptocurrency exchange since 2011 © 2011 - 2025 BTCC.com. All rights reserved