The Federal Reserve Market Capitulation and the Start of a New Bull Market

23 Aug 2023 · 1 min

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In this monologue, The Art of Crypto argues that historically every Federal Reserve rate cut has been followed by a market capitulation rather than a rally. He interprets this pattern as indicating that the next rate cut will trigger a market bottom in early next year, after which a sharp recovery will launch the next bull market. This recovery is expected to coincide with the Bitcoin halving cycle, an anticipated recession, and the eventual availability of capital as rates are cut. Additionally, he highlights BlackRock’s push to launch a Bitcoin ETF in 2024 as a further catalyst for the upcoming bullish phase.

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Because historically speaking, after every Federal Reserve rate cut, the markets will always tank. In fact, the markets will always capitulate, almost always, after every rate cut. You might think, oh, but the Federal Reserve is cutting interest rates, that's a bullish thing, right? No, apparently the market doesn't think so. So all of this, right, all of this is pointing back to a timeline of the market capitulating sometime during the early, like sometime during early next year, finding a bottom, and then aggressively recovering that bottom to kickstart the next bull market. in line with the Bitcoin halving cycle, in line with, you know, an official quote-unquote recession, and in line with when the Federal Reserve is finally cutting rates and people finally have money to buy assets again. And to top it all off, we have BlackRock who have pushed their ETF to 2024.