Expected Fed Rate Cuts Support Bull Case in Bitcoin, But There is a Catch

The dollar index, which gauges the USD’s exchange rate against major fiat currencies, initially strengthened after the Fed kicked off the rate-cut cycle in mid-2000, September 2007, and August 2019. The S&P 500, a proxy for worldwide investor risk appetite, saw bouts of risk aversion during the early stages of the rate-cut cycle.