Massive Bitcoin Rally Predicted For Next 6 Months After Fed Rate Cut
18 Settembre 2024 - 4:00AM
NEWSBTC
As the crypto community awaits the Federal Reserve’s (Fed) rate cut
announcement on September 18, the stakes are high for Bitcoin (BTC)
and the broader financial landscape. This upcoming decision
marks the first central bank rate cut since the Fed slashed its key
rate to near zero in March 2020 amid the COVID-19 pandemic.
Will A 50bps Cut Spark A Bitcoin Bull Run? According to CME Group’s
FedWatch tool, markets are currently pricing in a 59% chance of a
half-percentage-point rate cut and a 41% chance of a quarter-point
cut. There’s an overwhelming expectation that by the end of 2024,
the Fed could implement up to 100 basis points in cuts, with nearly
60% odds of 125 basis points. This suggests that investors
anticipate at least one or two substantial rate cuts in the three
remaining Fed meetings of the year, starting with this week’s
announcement. Related Reading: Shiba Inu Competitor FLOKI Forms
Falling Wedge That Could Trigger 54% Breakout The potential effects
of a 50 basis point cut remain hotly debated within the crypto
industry. Market expert Crypto Rover argues that such a cut could
reignite a bull run for Bitcoin, stating that the conditions could
lead to “super bullish” prospects. Similarly, analyst Lark
Davis recalls how Bitcoin previously surged following past rate
cuts, predicting that if history repeats, the next 6-12 months
could see significant price increases for the largest
cryptocurrency on the market. Optimism Vs Historical Caution In
Crypto Market In addition to optimism and bullish expectations,
other analysts express caution. EmperorBTC predicts an initial
market pump following the rate cut, driven by cheaper borrowing
costs. However, the analyst warns of profit-taking by
short-term holders leading to a subsequent market dump, suggesting
a “sell the news” scenario that could leave many investors
disillusioned before the market stabilizes and resumes growth. On
the other hand, technical analyst Justin Bennett offers a more
cautionary historical perspective. He points to the market’s
performance during the Fed’s rate cuts in 2007, when the Nasdaq 100
Index retraced significantly after the initial cuts, suggesting
that the same pattern could emerge in 2023. Bennett’s
analysis suggests that current market conditions may mirror
previous downturns, calling into question the optimistic
projections shared by some for the broader digital asset market.
Related Reading: Bearish Signal For Ethereum: Funding Rates Hit New
2024 Lows—Is A Rally Still Possible? In a similar vein, NewsBTC
reported on Monday the analysis of crypto strategist Doctor Profit,
in which he highlights a divided sentiment in the market regarding
the rate cut, with equal chances of a 0.25% or 0.50%
reduction. However, the analyst is leaning towards the larger
cut, arguing that failure to take decisive action could lead to
turmoil reminiscent of “Blood Monday” on August 5, when Bitcoin
experienced a sharp decline to $48,900. Despite the divided
sentiment in the market, Bitcoin has jumped from the $57,000 mark
traded on Monday to a current price of $61,000, recording a surge
of nearly 6% in a matter of hours in anticipation of tomorrow’s
announcements. Featured image from DALL-E, chart from
TradingView.com
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