🎭 Fed’s Rate Cut Tango: Will Bitcoin Waltz or Stumble? 💃🕺

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Darling, Do Take Note! 🌟

The PPI report on the 10th of September, my dear, has left Wall Street clutching its pearls! 🥂 The odds of a Fed rate cut in September are as high as the eyebrows at a Coward cocktail party, and Bitcoin, my love, is in for a spot of turbulence. 🌪️

The U.S. annual Producer Price Index (PPI), darling, sashayed in at 2.6% for August, a full pirouette below the expected 3.3%. How très unexpected! 💃

The core PPI, my pet, was 2.8% on a yearly basis, missing the analysts’ grand expectations of 3.5%, as reported by the ever-so-dull U.S. Bureau of Labor Statistics (BLS). 📰

This, my dear, marked the third time in 2025 that the PPI has hinted at outright deflation. The lower core reading, after July’s 3.7%, is positively delightful news! 🥳

It all points to a Fed rate cut in September, doesn’t it? 🕵️‍♂️

The CME FedWatch tool, that clever little thing, indicates a 91.1% probability of a 25-basis-point rate cut and a mere 8.9% chance of a 50-basis-point cut. How thrilling! 🎢

The likelihood of a bigger cut, my sweet, jumped from 7% after the data was unveiled on the 10th. Scandalous! 😱

Bitcoin’s Little Drama 🎭

The backdrop for Bitcoin [BTC], my dear, is as bullish as a Coward wit at a society gathering. The U.S. Congress has instructed the Treasury to ponder a strategic Bitcoin reserve. How utterly progressive! 💼

Bullish in the long term, of course, but BTC has shown a bit of short-term weakness. Tsk, tsk. 😏

Farzam Ehsani, the darling Co-founder and CEO of VALR, shared his thoughts with AMBCrypto, leaning cautiously bullish. 🧐

“For now, traders remain on edge with the upcoming CPI, PPI data print, and the Fed’s September rate decision. It’s all rather nerve-wracking, isn’t it?” 🧘‍♂️

He added, with a wink:

“If ‘sell the news’ takes center stage, BTC could face another shakeout before the market regains its composure. How very dramatic! 🎬”

There’s reason to be bullish, especially with these rate cuts on the horizon. 🌅

In a CryptoQuant Insights post, XWIN Research Japan demonstrated how Bitcoin and its metrics have historically reacted to interest rate easing. How fascinating! 📈

In March 2020, the Fed slashed rates to near zero during the pandemic, causing the MVRV to drop to 1 before rebounding post-liquidity injections. Ah, the drama of it all! 💉

The easing cycle in late 2024 saw the MVRV hover near 2, showing the market had room to expand without overheating. At the time of writing, the MVRV ratio was at 2.14. How perfectly balanced! ⚖️

The exchange whale ratio, my dear, tends to spike right after rate cut announcements, indicating short-term selling. But fear not! In the following weeks and months, the whale ratio dropped off, both in 2020 and 2024. 🌊

So, Bitcoin traders and investors, brace yourselves for a spot of turbulence, which should set the stage for a long-term rally. Ta-da! 🎉

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2025-09-11 16:31