Goldman Sachs predicts the Federal Reserve could slash interest rates twice in the next two years — kicking off as early as Q3 2024 — amid data showing inflation may have peaked. The analysts' forecast revisions expect rates ending 2024 lower despite labor market resilience.

Rate cuts typically signal the Fed believes tightening economic conditions have moderated price pressures enough. Lower rates in turn spark rallies by cheapening borrowing costs and boosting appetites for riskier, higher-yielding assets.

The timing aligns with Bitcoin's next halving event, expected in April 2024. Past halvings spurred immense crypto bull runs by cutting the pace of new bitcoin supply entering circulation - programmatically increasing scarcity.

If both a U.S. monetary policy pivot and Bitcoin halving transpire by mid-2024 as foreseen, the twin catalysts could unleash substantial momentum. The confluence may present optimal conditions for bitcoin to recapture record highs.

The Fed's rate hiking campaign sapped crypto demand in 2022 by making bonds relatively more attractive amid stable yields. But Goldman's analysis suggests the central bank could reverse course sooner than anticipated as underlying inflation shows signs of subsiding.