After digesting Wednesday's FOMC meeting, cryptocurrencies are pricing in expectations of looser monetary policy and Fed rate cuts in 2023.Rate cut expectations, declining inflation, and highly oversold technical conditions can cause a reflexive rally back to $24k - $28k/BTC.We expect Bitcoin and altcoins to rally into the September FOMC meeting, then dump afterward.Raise Rates = Bullish Bitcoin?The Federal Reserve raised interest rates by 0.75 basis points during Wednesday's (7/27) FOMC meeting, moving its benchmark rate to 2.25%-2.5%. Immediately afterward, risk-on assets turned bullish as investors interpreted the Fed's plan as dovish. During his speech, Jerome Powell stressed two overarching points: Talking tough on inflation. The likelihood of further hikes and an unusually large increase in September. With the Fed's explicit intent to kill inflation, markets know this will require rate cuts afterward. Although the Fed's words were literally hawkish, risk-on assets shifted bullish in anticipation of rate cuts in 2023.Furthermore, markets assume a maximum of 50 - 100 basis points before the Fed stops raising. Plus, Powell stressed the importance of inflation data leading into the September FOMC - meaning that if inflation lowers, the Fed will be inclined to take a more dovish stance.SPX:USD (Weekly) vs US Interest Rate (TradingView 8-2-2022)Following the previous week's bullish cryptocurrency price action, investors have i...
