đšBREAKING: BTC To $40k? - Fed Rate Cut Could Trigger 20% Bitcoin Drop!
A potential interest rate cut by the U.S. Federal Reserve could lead to a significant drop in Bitcoin's price, defying expectations that it would boost the market. Analysts at Bitfinex warn of a "challenging time" for Bitcoin traders, suggesting that a rate cut might cause BTC to plunge by 15-20%, potentially falling to $40,000-$50,000âa level not seen since February.
Historically, September has been a volatile month for Bitcoin. The anticipated rate cut adds another layer of complexity, possibly intensifying market turbulence. âThis logic could be negated quite easily if macroeconomic conditions change,â Bitfinex analysts noted. As the Fed's interest rate decision approaches on September 18, market sentiment remains cautiously optimistic, spurred by Fed Chair Jerome Powell's dovish comments in August suggesting a readiness to lower rates.
Bitcoin is currently trading around $57,754, down 2.67% over the past week. A 20% drop from this level would place Bitcoin around $46,000âa critical price point identified by analysts as necessary for sparking the next bull run. Markus Thielen, head of research at 10x Research, suggested in early August that Bitcoin needs to dip into the low $40,000s to optimally time the next bull market entry.
Opinions are split among traders and analysts. Joe Consorti from The Bitcoin Layer points out that "$60,000 is no longer a blow-off top level dominated by speculators; itâs now a consolidation zone where long-term, mature holders accumulate and HODL.â Meanwhile, crypto trader Daan Crypto Trades observes that Bitcoin is âstill fighting around its Bull Market Support Band,â showing no strong inclination to break out in either direction.
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