Asymmetric Hedge Fund Founder: If the Federal Reserve cuts interest rates by 50 basis points, cryptocurrencies will be boosted

Asymmetric hedge fund founder and CEO Joe McCann stated that a 25 or 50 basis point rate cut is like "flipping a coin", as the US Federal Reserve prepares to lower interest rates from their current 24-year high of 5.5% on September 18th (Wednesday), marking the first rate cut since March 2020.

He added that recent media reports and speeches by former Fed officials have influenced market expectations for a 50 basis point rate cut. McCann also said that a smaller reduction of 25 basis points could be detrimental to the cryptocurrency market. "I believe if the Fed cuts rates by just 25 basis points, it will hit stock markets hard, and cryptocurrencies may fall too. The reason being, assuming the Fed cuts rates by 50 basis points, then stocks are already at historic highs. If there's a full half-point cut, it would likely have positive effects on risk assets such as cryptocurrencies."