Bitcoin treasuries could tap PIPE and convertibles if Fed slashes rates today

Core Viewpoint - The Federal Reserve's anticipated decision on interest rates is expected to significantly impact Bitcoin's price, with traders predicting a high likelihood of a rate cut [1][2]. Group 1: Federal Reserve and Interest Rates - Traders on Polymarket estimate over a 90% chance of a 25 basis points rate cut on September 17 [1]. - A rate cut is expected to increase liquidity in the market, which could lead to more investments in riskier assets, including Bitcoin [4]. Group 2: Impact on Bitcoin Treasury Firms - Alexander Blume, CEO of Two Prime, suggests that a rate cut could lead to increased funding for Bitcoin treasury firms through private investment in public equity (PIPE) and convertible debt [2][3]. - The expectation of a continued bull market encourages investors to participate in these funding mechanisms, betting on a long-term rise in Bitcoin prices [4]. Group 3: Market Sentiment and Bitcoin's Role - Blume believes that a 25 basis points cut over the next several quarters will be beneficial for risk assets, including Bitcoin [5]. - High inflation, a stalling labor market, and a weakening dollar are factors that strengthen Bitcoin's position as a trusted reserve asset [6]. - Recent market trends show a flight to safety, with gold prices rising, and it is anticipated that Bitcoin will follow this trend [7].