On Wednesday, the Federal Reserve is expected to implement a hawkish cut, reducing rates by 25 basis points—marking the third cut this year and bringing the total to 100 basis points. However, Chairman Jerome Powell is likely to emphasize that the path ahead remains uncertain. Despite this, equities maintained an upward trend on Friday, with the Nasdaq rising by 0.76% to reach 21,780 points.
On Thursday, the Bank of England is anticipated to hold its interest rate at 4.75%, but it is expected to signal potential future cuts. Similarly, the Bank of Japan is also expected to maintain its current rate after hiking in March, though market participants will be closely watching for indications regarding the timing of any future rate increases.
In the cryptocurrency market, Bitcoin remained above $100,000 throughout the weekend, despite some fluctuations in other cryptocurrencies. Currently trading at $105,000, Bitcoin has surpassed its previous high, driving broader market momentum. Additionally, Citron Research has taken a short position on MicroStrategy (MSTR), arguing that the company’s stock price has become increasingly disconnected from the underlying value of Bitcoin. Citron claims that investing in MSTR equates to paying around $250,000 per Bitcoin, raising concerns about its valuation.