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The Bloomberg Terminal has just published an X post, reporting a warning from one of the major US banks, JP Morgan, regarding the interest rate cut expected in September.
"Sell the news" event predicted by JP Morgan
JP Morgan warns the financial community that the rate cuts, which are expected to happen on September 17, may trigger massive sell-offs in the stock market – a “sell the news” event, pushing prices down.
JP Morgan says that despite the 30% surge of the S&P 500 since April, there are still risks from inflation, low readings of the jobs report, the impact of trade tariffs, and the historical September weakness for markets.
The banks recommend hedging risks with VIX calls and buying gold. However, Bloomberg Terminal reminds the community that historically, “rate cuts outside recessions can still lift markets.” The crypto market and Bitcoin in particular are closely correlated with stocks. Therefore, it is likely that Bitcoin will either follow the S&P 500 up or will crash along with it.
Lark Davis bullish on crypto in Q4
Crypto YouTuber and trader Lark Davis has published a tweet expressing his bullish expectations for the fourth quarter this year.
He stated that even though historically September is “one of the worst months for crypto,” there are certain positive factors – some major coins are demonstrating price breakouts, others are trading sideways and are not falling.
“Makes me even more bullish for Q4,” Lark said.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team