10x Research: A 50 basis point rate cut next week may trigger risk aversion in the market, putting pressure on the rise of risky assets

BlockBeats news, September 14, according to Coindesk, 10x Research believes that if the Federal Reserve cuts interest rates by 50 basis points (bps) on September 18, the originally bullish liquidity easing cycle may have an adverse impact on risky assets including cryptocurrencies.

It is reported that the adjustment of 50 basis points usually indicates the urgency of controlling inflation and triggers risk aversion in financial markets. A 50 basis point rate cut next week may mean increased concerns about the economy or a sense of lagging behind in responding to the coming economic slowdown, causing investors to reduce their exposure to risky assets such as Bitcoin (BTC) and stocks.

Markus Thielen, founder of 10x Research, said: "Although the Fed's 50 basis point rate cut may mean that the market is more worried, the Fed's main focus will be on alleviating economic risks rather than managing market reactions."