Bitcoin’s price could go up or down as the Federal Reserve gets ready to make its much-anticipated interest rate decision. The markets are split over how this might affect the cryptocurrency.
Should the Fed decide on September 18, interest rates may be the first they have been decreased since the COVID-19 epidemic. People believe that the rate reduction will significantly affect the financial markets, especially Bitcoin, which lately plummeted below the significant $60,000 support level.
According to analysts at crypto exchange Bitfinex, the most valuable cryptocurrency in the world might get more erratic both before and after the Fed releases its announcement. Experts in bitfinex informed Cointelegraph that the upcoming interest rate decision might cause significant movement in Bitcoin prices.
Bitcoin’s Future Hinges On Federal Reserve’s Interest Rate Cut Decision
After falling below the $60,000 mark on August 30, BTC briefly rose above it on September 14, but then it lost ground again. According to analysts at Bitfinex, Bitcoin may have hit a price low around $52,000. This is a key level in the market’s correction phase.
Right now, it looks like Bitcoin’s future will depend a lot on how much the Federal Reserve cuts interest rates. Markets are currently expecting a 50 basis-point cut, and data from the CME FedWatch Tool shows that there is a 67% chance that this will happen. However, Bitfinex experts think the cut will be much smaller, at 25 basis points. They base this on past trends.
“There is a good chance of a 50 basis-point cut, but we think a 25 basis-point cut is more likely.” Analysts at Bitfinex said, “No matter what happens, the next decision could set the stage for a big Bitcoin rally in the coming months.”
Bitcoin has historically done very well in the last three months of the year. They think that if the Federal Reserve lowers interest rates, Bitcoin could start a three-month rise that could take the price of the cryptocurrency above $92,000. October, November, and December are usually good months for BTC, and the decision on the rate could give the market new energy.
The Federal Reserve’s choice is important for BTC and the financial markets as a whole, as investors try to figure out how monetary easing might affect risky assets. If volatility goes up, Bitcoin traders may have a hard time in the short term, but analysts say the picture for the end of the year is still positive.
