10x Research Says Very Positive About FED in Bitcoin: Surprise Results May Come! - Coin Bulletin

According to 10x Research, the Fed may be more cautious than the market expects about interest rate cuts during the Trump era.

In the US, markets have been expecting three interest rate cuts by the Fed this year, but a new report prepared by 10x Research has shown that this expectation is overly optimistic. The company's founder Markus Thielen pointed out that the inflation pressure caused by the customs tariffs implemented by Donald Trump could restrain the Fed's moves.

Is the Fed's intervention point changing?

According to Markus Thielen, the Fed may wait for a few months, or even a few quarters, to fully assess the impact of the Trump administration on inflation. This process indicates that the Fed will not cut interest rates as quickly as the markets expect at the moment and will maintain its neutral stance for a while longer.

The 10x Research report also mentioned the concept of "Fed put," which shows the level of Fed's intervention in the markets. Thielen said that during the Trump era, the level at which the Fed would intervene to support the market could be lower compared to the Kamala Harris or Joe Biden administrations. This means that the markets will have to tolerate more volatility.

Thielen's comments are particularly noteworthy as a development that could limit the rise of risky assets such as the cryptocurrency market. Because the Fed's longer-than-expected inaction reduces the likelihood of sustainable growth for risky assets like Bitcoin (BTC).

The February employment data from the US today and the Crypto Summit meeting at the White House are among the top agenda items for market players. However, according to 10x Research, positive developments in the short term may not change long-term expectations.