Goldman Sachs Forecasts Earlier Fed Rate Cut, Potential Boon for Surging Crypto Market
• Goldman Sachs now sees the Fed delivering its first rate cut in Q3 2024, moved forward from previous Q4 2024 forecast • Shift comes as crypto market has surged recently on expected Bitcoin ETF launch, mining reward halving, and decline in 10-year Treasury yield • Current Fed benchmark rate is 5.25%-5.50%; traders expect decline to 4% by end of 2023 • When rates drop, borrowing gets cheaper which spurs risk assets like crypto • Fed kicked off tightening cycle in March 2022, raising rates rapidly from 0%-0.25%; weighed on crypto and risk assets in 2022