TL;DR

• Inflation and consumer is cooling, while the US has debt repayments approaching — all suggesting we’ll see rate cuts in September (which should rally crypto markets).

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Bitcoin is like a well-trained pooch just waiting for its owner to give the “OK,” so it can gobble up a bowl of kibble.

(The kibble in this analogy is investor dollars).

The “OK” that Bitcoin investors are waiting for is a hint from the Federal Reserve that they’ll soon start cutting interest rates.

(Making loan/credit repayments cheaper and allowing market players to take out larger loans and invest in higher-risk assets, like crypto).

The Fed meets this Wednesday, and while no one is really expecting them to announce a cut, most will be reading the tea leaves of Fed chair Jerome Powell’s public statements — hoping to tease out the indication of September rate cuts.

If/when that happens there’s a high chance the crypto market will rally.

Here’re the indicators that suggest we’ll see a September rate cut:

1. The price of stuff (aka: inflation) rose in June, but only modestly, indicating inflation is slowing and the Fed can cut safely.

2. Consumer spending slowed last month, hinting at a weakening economy (a good fix to that = lowering interest rates).

3. The US has payments coming up on **checks notes ** $35 trillion worth of debt. If the Fed lowers rates, the US pays less on those loans.

Here’s what we can expect in the coming week:

Volatility. And lots of it.

Markets like certainty, and right now, a lot is up in the air economically (impacts of inflation, elections, US debt repayments, etc.)

Heck, yesterday we saw Bitcoin round $70k, then promptly dip back down below $68k (good news is, the overall trend is still positive).

Either way, brace yourselves!