Analyst Predicts Fed’s 0.50% Rate Cut as Bitcoin and Stocks Brace for Volatility

• Analyst forecasts a 0.50% rate cut by the Fed, citing improved inflation trends as a key factor.
• Bitcoin and stocks face extreme volatility, with market manipulations expected ahead of the Fed’s rate cut decision.
• Geopolitical risks and potential market panic could offer buying opportunities, but risk management is essential for traders.

DrProfitCrypto, a crypto analyst on X, has shared a critical market outlook ahead of the Federal Reserve’s expected rate cut on the 18th. The market is split 50:50 on whether a 0.25% or 0.50% cut will be implemented. 

DrProfitCrypto, however, remains firm in his earlier prediction of a 0.50% rate cut, citing previous forecasts where inflation indicators like CPI and PPI performed better than expected. 

According to the analyst, this stronger inflation performance opens the door for a more aggressive cut, which he views as essential to prevent another market crash like the recent “Blood Monday.”

Market Awaits Decision as Speculation Grows

The potential rate cut has been a cause of speculation, with the market bracing for volatility. Notably, DrProfitCrypto asserts that a 0.25% cut would be insufficient to stabilize the current economic environment. 

He stresses that Federal Reserve Chairman Jerome Powell will likely emphasize the positive inflation trends and overall improved economic outlook as justification for a 0.50% cut. This aggressive approach, the analyst suggests, would avoid further market instability and show the Fed’s commitment to its rate strategy.

Bitcoin and Stocks Face High Volatility

In the run-up to the Fed’s decision, Bitcoin and stocks are expected to experience heightened volatility. DrProfitCrypto likens the market to a “casino,” with unpredictable swings in both directions. He warns of potential manipulations that could affect traders, especially those unprepared for extreme market moves. 

He also highlighted that traders should expect “scam wicks” and manipulations on both sides, which could hurt those without solid positions. However, the analyst remains bullish on the mid- and long-term market outlook, predicting continued market growth through Q3 2025.

Risk Management 

DrProfitCrypto emphasizes the importance of risk management. With geopolitical tensions, including a potential Israel-Lebanon conflict, markets could see additional stress. He advises traders to protect their positions with stop-losses and be cautious in the days leading up to the rate cut. 

Notably, he believes that short-term panic could present an opportunity to accumulate more assets, particularly as the Federal Reserve prepares for further monetary easing later this year.