The world’s largest crypto is starting to rally

The financial media has been all over the market action since the Federal Reserve cut interest rates last week. The S&P 500 surged following the news of a 50-basis-point (0.50%) cut – sending stocks to record highs. But that’s not the only asset class that has been on the move… [Header]( The World’s Largest Crypto Is Starting to Rally Dear reader, The financial media has been all over the market action since the Federal Reserve cut interest rates last week. The S&P 500 surged following the news of a 50-basis-point (0.50%) cut – sending stocks to record highs. But that’s not the only asset class that has been on the move… Bitcoin (BTC-USD) has also been rallying. Now, the world’s largest cryptocurrency is about to break out to its best level since early August. [mmi 9-23 btc] Bitcoin is up about 9% since last Tuesday – the day before the Fed meeting. The S&P 500 is up about 1% over the same time frame. The goldbugs tend to be loud and therefore the yellow metal has been grabbing some headlines, even though it is lagging bitcoin with a gain of only 2% since last Tuesday. Let’s keep our eyes on bitcoin for now, though, and discuss its outlook heading into 2025… Over the years, bitcoin and the Fed’s policy have formed a direct relationship. As you can see in the chart below, the fed-funds rate has held significant influence over the price of bitcoin over the last decade. [mmi 9-23] When the Fed began lowering interest rates in 2019 and continued to do so in 2020, bitcoin bottomed below $5,000 before eventually rallying to more than $66,000. Then, the Fed began hiking rates, which caused bitcoin to suffer a major pullback. Several factors are at work to create this relationship. The most important is that when the Fed increases interest rates, it lowers liquidity in the market and makes “risky” investments – like bitcoin – less attractive. Meanwhile, higher interest rates make income-producing assets more attractive. Everything from cash to lower-risk dividend paying stocks can attract money away from the “riskier” assets. --------------------------------------------------------------- 'Hidden' Computer Code = Monthly Crypto Income? [GIF-1]( Everyday folks can collect “crypto royalties”... In other words, income from holding your crypto. And the best part is: You do NOT need to know anything about crypto... You do NOT need a lot of money (only $100 to start)... And you do NOT need a lot of free time (these payments are already pre-programmed into the computer code)... [Click here to watch my presentation and learn how to collect your first “crypto royalty.”]( --------------------------------------------------------------- But now, the Fed has started its interest rate cutting cycle and plans to continue moving rates lower in the coming year. That means we could see investments shift back into asset classes that carry above-average risk – bitcoin included. I haven’t changed my prediction that bitcoin will reach $100,000 during this current four-year cycle. In fact, we could see that happen before the end of this year – depending on the election and where the economy goes in the next three months. But overall, this recent move higher is a positive development for bitcoin and crypto in general. I’ll continue to monitor the asset class’s performance in the coming weeks and months. Here’s to the future, [Matt McCall signature] Matt McCall Editor, Market Insights Check Out My Latest Podcast [MMI Sept 18 Podcast]( I’m willing to bet most folks don’t think too much about energy drinks as an investment idea. But what if I told you one energy-drink maker was one of the best-performing stocks over the last 30 years? [On this new episode of SteadyTrade Podcast](, Tim Bohen and I dive into this particular stock. But it’s not the only consumer-staple stock that has been flying under the radar recently. This industry has more than doubled the return of the tech sector here in 2024. And two niche areas within this broader space could be the next big winners. [Click here to tune in now](. © Centurion Publishing 13809 Research Blvd, Suite 500, Austin, TX 78750 [CenturionPub.com]( *Results are not typical. Past performance does not indicate future results. All investing carries risk. Our Privacy Policy, along with our Term & Conditions, governs your use of this site. By using our site, or by accepting the Terms of Use (via opt-in, checkbox, pop-up, or clicking an email link confirming the same), you agree to be bound by our Terms & Conditions and our Privacy Policy. If you have provided personal, billing, or other voluntarily provided information, you may access, review, and make changes to it via instructions found on the Website or by replying to this email. 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