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Economist Predicts A 1995-Style Fed Cut Cycle As ‘Animal Spirits’ On The Loose For Bitcoin, Gold, Other Asset Classes

The increasingly bullish sentiment on Bitcoin (CRYPTO: BTC) and other risky assets demonstrated by investors lately might force the Federal Reserve to maintain a more hawkish stance than expected to prevent further inflaming a financial asset bubble, which could result in a subsequent higher inflation. This perspective is gaining traction among Wall Street analysts, with Alfonso Peccatiello, founder of ‘The Macro Compass’ and known on X as @macroalf, positioning himself among those anticipating a shorter and shallower Fed rate cut cycle ahead. Last week, JP Morgan Chief Market Strategist Marko…