Short-Term Panic For Bitcoin Likely After Upcoming Fed Rate Cut, Market Expert Warns

As a seasoned crypto investor with over a decade of experience navigating market volatility, I find Doctor Profit’s insights both enlightening and cautionary. Having weathered multiple financial storms, I can attest to the importance of remaining calm during turbulent times.


As a crypto investor, I’ve been keeping a close eye on the upcoming rate cut by the Federal Reserve, which is just around the corner. A seasoned crypto expert has provided insights into Bitcoin‘s potential reaction post this rate cut, with special focus on the events of September 18, a date that has sparked quite a buzz within our community.

Bitcoin’s Short-Term Panic Is A “High Probability”

On the X platform, renowned financial analyst Dr. Profit sounded an alarm for Bitcoin investors, predicting a potential short-term flurry of anxiety in response to the upcoming interest rate reduction by the Federal Reserve.

According to the analyst’s perspective, when investors adjust to economic shifts, temporary drops or adjustments in the market could occur. However, even with these market fluctuations in the near future, the analyst remains optimistic about Bitcoin’s prospects for the long haul.

In simpler terms, Doctor Profit’s experts predict a temporary flurry of fear if the Federal Reserve lowers interest rates by 0.50%. This could be further intensified if there are indications of Israel invading Southern Lebanon. The expert suggests that when this fear reaches its peak, it could present an opportunity for investors to buy more Bitcoin. However, at the moment, the advice is to hold onto existing long and spot positions.

Doctor Profit expects significant short-term price fluctuations in Bitcoin, making it challenging to predict its exact next value. Nevertheless, he plans to maintain his investment positions, both spot and long, within the range of $50,000 to $53,000, which he acquired during last Monday’s market crash. He also cautions investors to be vigilant against fraudulent activities, as there’s a possibility that Bitcoin’s price might be manipulated by up to 100% during this period.

Doctor Profit pointed out that the Fed might mask its anxiety over the situation as a reaction to geopolitical issues and use it as a disguise. Consequently, this expert has elevated his risk management strategy to its maximum level until the end of the month, ensuring that his investment positions (spot holdings and longs) remain secure with stop-losses already set at their entry points.

So far, he recommends investors to prioritize staying resilient amidst the impending short-term turmoil over trying to foresee Bitcoin’s immediate direction. He underscores the importance of having a robust strategy during such volatile times.

Possible Impact On Market Movement

As the event approaches on September 18th, Doctor Profit suggests there’s an equal possibility that the interest rate might decrease by either 0.50% or 0.25%. Yet, he feels that a 0.25% reduction would have minimal impact considering the present state of the market and economy.

If the Federal Reserve fails to lower interest rates by 0.50%, as suggested by Doctor Profit, there’s a possibility we might see another significant market drop similar to the one experienced recently, which Chairman Jerome Powell of the U.S. Federal Reserve is keen to prevent.

The expert predicts that Powell is likely to highlight the unexpectedly swift decline in inflation and express his contentment with the Fed’s aggressive rate-hike strategy. He will also underscore the improving economic outlook without fear of a recession, hinting that further cuts could be on the horizon.

Short-Term Panic For Bitcoin Likely After Upcoming Fed Rate Cut, Market Expert Warns

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2024-09-16 18:41