Analysts: US interest rate cut could help Bitcoin fall by 20%
Analysts of the Bit Phoenix exchange have stated in a report that the interest rate cut by the US Federal Reserve, contrary to expectations to strengthen the digital currency market, could lead to a decrease in the price of Bitcoin.
Summary of analysis
- Some analysts believe that with the reduction of interest rates by the Federal Reserve, the price of Bitcoin can enter the range of $40,000 with a 20% decrease.
- The meeting of the Federal Reserve to determine the interest rate will be held on September 18.
According to Cointelegraph, some analysts believe that the interest rate cut by the US Federal Reserve, contrary to what the market participants were waiting for, can cause a decrease in the price of Bitcoin.
BTC:
and drag it down to levels that have not been seen since February (February 1402) until now.
Bit Phoenix exchange analysts announced on September 2 (12 Shahrivar):
If we want to predict, we should be ready for a 15-20% drop in the price of Bitcoin and its bottom of $40,000-$50,000 at the time of interest rate cuts.
BitPhoenix analysts have made their claim based on the fact that September has historically been a volatile month for Bitcoin, and the interest rate cut by the Federal Reserve can make the market conditions one layer more complicated and possibly market volatility. strengthen This report states:
This scenario can easily be invalidated by a change in the macroeconomic situation. Traders are now in a state of uncertainty.
The meeting of the Federal Reserve to determine the interest rate will be held on September 18. Federal Reserve Chairman Jerome Powell announced in August that the time has come to cut interest rates, and according to his words, market sentiments were optimistic.
Investors often find riskier assets like Bitcoin more attractive when interest rates fall, as traditional assets like bonds and time deposits yield less.
At the time of writing this analysis, Bitcoin is trading at $56,765, down 3.42% overnight.
A 20% drop in Bitcoin price will bring it to $46,000. Bitcoin was last at this level on February 8 (19 February 1402). Meanwhile, Markus Thielen, the head of the research department of 10x Research, also said that the price of Bitcoin must decrease to this extent before starting its upward trend.
Bitcoin Layer company analyst Joe Consorti wrote in his Twitter post:
The $60,000 level is no longer a price peak dominated by speculators, but a price stabilization level where long-term and more mature holders accumulate and hold Bitcoin.
Meanwhile, another analyst with the pseudonym Daan Crypto Trades wrote:
Bitcoin continues to struggle within the bullish support range. It seems that Bitcoin does not intend to move away from this range at this stage.
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