Goldman Sachs Economists Predicted 2024 Interest Rate Cuts. BTC Price Changes?

There is ongoing discussion about when the FED will begin to decrease interest rates, with varying viewpoints on the matter.

Despite the FED’s indications ruling out a rate cut in March and the focus shifting to May, Goldman Sachs holds a contrasting view.

Goldman Sachs Predicts Lower Rates Starting in June

Goldman Sachs economists recently predicted that there will be four reductions in interest rates in the USA in 2024, with the first one anticipated to occur in June.

Goldman Sachs analysts have recently revised their predictions regarding the timing of the Federal Reserve’s decision to lower interest rates.

In the beginning, economic experts predicted that there would be five reductions in interest rates for the year 2024. However, they have now projected that the first reduction in interest rates will most likely take place in June.

In spite of the fact that the figures for inflation in January were higher than expected, economists advise that one should not give it an excessive amount of attention. They predicted that core inflation would fall to 2.5% by the time the Federal Open Market Committee met in May and then to 2.2% in June.

The economists at Goldman Sachs have predicted that there will be multiple reductions in interest rates in the years to come. These reductions are anticipated to take place in June, July, September, and December of 2024, and then four more reductions are expected to take place in 2025.

The Likelihood of a Rate Cut in May Is Extremely Low

There is a 76% chance that interest rates will remain unchanged in May, according to the FED Watch tool operated by CME Group. Additionally, there is a 23% chance that there will be a 25 basis point reduction.

On the other hand, there is a 42 percent chance that the Federal Reserve will keep interest rates the same in June, while there is a 53.7% chance that they will reduce them by 25 basis points.

As you might recall, the Federal Reserve maintained its decision on interest rates in January, meeting expectations by keeping rates steady within the 5.25-5.50 percent range.

How Will Interest Rate Decisions Affect Cryptocurrencies?

Anticipated rise in Bitcoin (BTC) and digital assets as the Federal Reserve initiates interest rate reductions. Bitcoin hit its highest point at $69,000 in November 2021, coinciding with the FED’s decision to raise interest rates.

Due to the correlation between the following bear market and the FED’s interest rate hikes, there is speculation that BTC could revert to its previous levels with a shift in policy and reductions in interest rates.

Currently, analysts anticipate significant growth in BTC value if interest rate reductions follow the Bitcoin Halving promptly.

According to analysts, they anticipate that reductions in interest rates post-April will propel the BTC value to a record level, with the halving projected to drive the Bitcoin price beyond its previous peak of $69,000.