Why the Fed rate cut is bearish for Bitcoin over the next two weeks

Title: The Fed Rate Cut: A Bearish Turn for Bitcoin Over the Next Two Weeks

As the Federal Reserve prepares to implement rate cuts, market analysts are predicting a bearish trend for Bitcoin over the next two weeks. According to BitMEX co-founder Arthur Hayes, the Reserve Repo Program (RRP) is expected to suck up liquidity from the markets, negatively impacting crypto assets. The Federal Reserve has been offering banks an attractive 5.3% interest rate on deposits in the RRP, making it more appealing than Treasury bills. However, as T-bill yields fall, funds are likely to exit Treasury bills and flow back into the RRP, further reducing market liquidity and putting pressure on Bitcoin prices. As a highly sensitive instrument that tracks dollar fiat liquidity conditions, Bitcoin could potentially decline towards $50,000 in this scenario.