Analysts are predicting a 0.25% rate cut by the Federal Reserve this week. Historically, such rate cuts have proven beneficial for assets like Bitcoin. This is because a rate cut tends to dilute the dollar's value, which, in turn, diverts investor attention towards alternative investments.
As the dollar weakens, Bitcoin and similar assets become more attractive to investors. The expected movement of funds into Bitcoin could result in a bullish trend for the cryptocurrency.
This possible rate cut is seen in the context of Donald Trump's win, with traders watching closely for indicators of how the political landscape might influence economic policy.
