I still don't understand how 99% of people I see around talking about FED rates consider that lowering of rates automatically means something bullish. Do these people not realize that everytime rates have been lowered in the past 24 years, with 100% accuracy, it just announced and underlying problem that ended in recession and thus a big correction of the SP500? (which would mean, a BTC correction almost guaranteed, unless unlikely huge uncorrelated price action)
Basically, if FED cut rates, it's bearish, since if there was nothing wrong, they wouldn't lower them. And if they keep them high, also bearish, because those in debt have bigger problems paying them, which lead to bankruptcies and unemployment as well as problems in society due mortgages not being able to be paid etc. So I don't see how a sort of a crash is avoided, but of course, this is not financial advice and timing on things can always be off. Me personally im keeping some cash on the side.
But I think normally when rates are cut it is BECAUSE of economic problems. Now rates are going to be cut simply because the country is used to them being at or near zero and so the rates are currently way out of tune with the idea this century of where rates should be to allow endless borrowing in the economy.
The rates starting to be cut later this year won't be to stop an economic decline, as the economy is doing just fine - the recession tons of people have been saying was imminent for the past two years never hit, and in fact the economy is looking stronger than expected right now. The rates will be cut simply to get it back in line with what people/borrowers/companies expect it to be. Though I think they will probably end up only cutting to like 2% instead of 0% this time because since the economy survived rates over 5% just fine there isn't a reason to go back to zero and having it at around 2% gives the Fed some options for cutting when the next inevitable economic decline does happen. Dropping from 5% to 2% I bet will happen over the course of like 2.5 to three years though.
And the rate cuts are good for Bitcoin price. This market cycle the ETFs, the halving, and rate cuts are going to be major catalysts. Because investors generally feel there is less risk investing when rates are low and when rates are being cut. So Bitcoin is going to feel safer to TradFi investors when they see the Fed cutting rates every few months.