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Highlights
- Peter Schiff calls the planned September rate cut a mistake.
- This comes as the US Dollar hits a 13-year low against the Swiss franc.
- Bitcoin enthusiasts set sights on the next market rally.
Expert trader Peter Schiff has termed possible Fed rate cuts in September a mistake as the U.S. Dollar falls against major currencies. Declining inflation marked by a fall in consumer prices increased momentum towards an imminent Fed rate cut. The crypto market awaits the leanings of the Federal Reserve with stakeholders projecting a bullish phase for Bitcoin.
Peter Schiff Flags September Fed Rate Cuts
Peter Schiff termed potential Fed rate cuts in September a mistake. In an Aug 27 tweet, he pointed to macroeconomic factors and a weakened dollar alongside loose monetary policy. His comments come after the U.S. dollar touched a 13-year low against the Swiss franc. Most financial market commentators have projected the first rate cuts in September amid slowing inflation. These came on the heels of reduced yearly consumer prices and global trends.
The U.S. dollar just hit a 13-year low against the Swiss franc, another sign that the #Fed‘s planned Sept. rate cut is a mistake. Monetary policy is too loose. The Swiss franc is leading the #dollar lower, which means Americans will soon be paying much higher consumer prices.
— Peter Schiff (@PeterSchiff) August 27, 2024
Recently, Fed Chair Jerome Powell’s speech signaled rate cuts and a shift in policy forging towards the 2% mark. While many of the market participants expected the projections, Powell stated that the rate cuts would depend on incoming data and the balance of risks. Meanwhile, the dollar slipped against other major currencies sparking wider concerns. The dollar fell against the GBP and EUR leading to shaky macro projections.
Impact on Bitcoin Price
Interest rate cuts are a bullish driver for the financial markets as more funds will flow towards risky assets. This year, market watchers have tipped rate cuts as well as other factors to usher in the next uptick in crypto prices. Furthermore, macro woes for the dollar and other centralized currencies have pushed the popularity of Bitcoin seen as a store of value.
In several jurisdictions, citizens turn to the leading cryptocurrency as a hedge against inflation amid negative macro sentiments. Crypto users hinted at Bitcoin as the solution to Schiff’s concerns on X following fears around centralized finance. In a related development, long-term holders’ supply of Bitcoin hit 262,000 BTC in the last 30 days. Long-term holders account for 75% of the total supply. BTC price stands at $61,415, a 2.4% decline in the last 24 hours.
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