
Analysts are anticipating a resurgence in cryptocurrency markets as the Federal Reserve signals potential interest rate cuts. Historical data over the past 70 years indicates that large-cap and small-cap stocks typically see significant gains following the first rate cut, with average returns of 15.6% and 26.6%, respectively, within 12 months. In the initial six months after a rate cut, large-cap stocks have averaged a 9.4% increase. Wells Fargo has suggested that large-cap bank stocks may also benefit in the first three months following these cuts. However, some market observers caution that while rate cuts are generally expected to bolster markets, historical trends, such as those observed in 2001, show that volatility may increase and recovery could be short-lived, followed by prolonged downturns.
With interest rate cuts likely in September, crypto market volatility is expected to surge. Most digital investors assume rate cuts will boost markets but history tells a different story. - In 2001 interest rate cuts were followed by a short recovery, then 10+ months of… https://t.co/wZkTmwJkDy
Rate cuts could benefit large-cap bank stocks for the first three months, Wells Fargo says
FREE POST‼️ 🔸What History Says About Rate Cuts and Stocks A look at past cycles to see how fast the Fed will cut and how the stock market will react: https://t.co/vZgzH3HQA3
