Bitcoin Excluded as Stocks, Bonds, and Gold Thrive Amid Global Monetary Easing
A coordinated global monetary easing effort is currently in progress, impacting various asset classes positively. However, despite this trend, bitcoin continues to face downward pressure. It appears that bitcoin might require more than just a few minor interest rate cuts to kickstart a new bullish phase.
Imagine if supporters of bitcoin were informed that major Western central banks had initiated a fresh round of monetary easing, with the S&P 500 and Nasdaq hovering near all-time highs, U.S. Treasury yields plummeting to multi-year lows, and gold reaching unprecedented levels. Would this pique their interest?
The upcoming decision by the Federal Reserve on whether to reduce its key lending rate by 25 or 50 basis points remains uncertain. Nevertheless, it is a definite fact that the U.S. central bank will commence its first easing cycle since 2019. The Federal Reserve will follow the footsteps of other prominent Western central banks like the European Central Bank, the Bank of England, and the Bank of Canada, all of which have already implemented rate cuts, with some having done so multiple times. Although Japan has not yet joined this trend and has actually initiated steps towards tightening, its current policy rate of 0.25% is only marginally above zero.
