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Analysts warn crypto may soar if Fed intervenes to save US stocks

Time:2010-12-5 17:23:32  Author:Exploration   Source:Knowledge  Views:  Comments:0
Summary:**Analysts warn crypto may soar if Fed intervenes to save US stocks** *The size and scope of the US



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**Analysts warn crypto may soar if Fed intervenes to save US stocks**
*The size and scope of the US stock market “gives policymakers a strong incentive to backstop major drawdowns,” said Bitget Wallet COO, Alvin Kan.*

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### Introduction
U.S. equity indexes have slipped into correction territory amid lingering inflation worries and tighter monetary policy, prompting market participants to watch the Federal Reserve closely. While the central bank’s primary mandate remains price stability, analysts argue that the sheer magnitude of the American stock market creates a powerful motive for policymakers to prevent a steep decline. That dynamic, they say, could spill over into digital assets, potentially igniting a sharp rally in cryptocurrencies if the Fed steps in to shore up equities.

### Key Developments
Recent trading sessions have seen the S&P 500 dip below its 200‑day moving average, a technical level often watched as a sign of broader market stress. Simultaneously, the Fed’s latest minutes revealed internal debate over the pace of rate hikes, with some officials signaling openness to pause or even reverse tightening if financial stability is threatened. In response, Bitcoin and Ethereum have shown modest gains, reflecting investor speculation that any equity‑supportive move—such as emergency liquidity facilities or asset‑purchase programs—could also lift risk‑on assets like crypto.

### Industry Analysis
Bitget Wallet’s COO, Alvin Kan, emphasized that the U.S. stock market’s depth and liquidity give regulators a compelling reason to act decisively during downturns. “When equities wobble, the Fed
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