As a seasoned crypto investor with a decade of experience under my belt, I’ve learned to navigate the volatile waters of the cryptocurrency market with cautious optimism. The recent surge in Bitcoin price has been nothing short of exhilarating, and I can’t help but feel a sense of anticipation ahead of Wednesday’s FOMC meeting.
Over the past day, the price of Bitcoin has significantly rebounded by approximately 4.5%, surpassing the $60,500 mark just prior to the FOMC meeting on Wednesday. According to technical analysis, Bitcoin has been moving within a declining channel. To kick off another bullish trend, it needs to exceed the top of this channel on a weekly graph. The upcoming Fed rate cut decision is generating a lot of anticipation, as investors are unsure whether Powell will choose a 25 or 50 basis point reduction. Major financial institutions like JPMorgan and Goldman Sachs predict a more conservative approach with a potential 25 basis point interest rate cut.
Bitcoin Price Needs Firm Closure above $61,900
According to well-known cryptocurrency analyst Rekt Capital, Bitcoin’s (BTC) price has been creating a trend of lower highs starting from late July. This week, it’s crucial to keep an eye on the $61,900 level. If BTC manages to surpass this threshold, it could potentially propel Bitcoin into an uptrend.
As an analyst, I’ve noticed that historically, approximately 150-160 days after a Bitcoin halving event, we tend to see a significant price breakout in Bitcoin. If we follow this historical pattern, the Bitcoin price should break out from its current reaccumulation range by late September 2024.
Additionally, it’s worth noting that historically, September has tended to yield poor returns with an average drop of about 4.48%. On the flip side, October has often shown positive monthly growth averaging 22.9%. This pattern might suggest that October could mark the end of Bitcoin’s long-term consolidation phase.
Will Fed Rate Cut Fuel BTC Rally?
As a crypto investor, I’m closely watching the upcoming FOMC meeting on September 18. The US Federal Reserve is considering a significant shift in its monetary policy, leaning towards monetary easing through potential interest rate reductions. The market, however, seems to be split: Will it be a 25 basis points or a 50 basis points rate cut? Only time will tell.
Here are the Fed rate cut odds heading into the big meeting.
50bps cut = 64%
25bps cut = 36%I believe that Powell will cut by 25bps.
— Jesse Cohen (@JesseCohenInv) September 17, 2024
In general opinion, it’s been believed that the Fed’s interest rate reduction will lead to an increase in available funds, serving as a trigger for Bitcoin’s price surge. Nevertheless, well-known economist Peter Schiff argues against this viewpoint. He suggests that instead of benefiting Bitcoin, the rate cuts could weaken the U.S. dollar, leading to a resurgence of inflation.
Contrarily, Massachusetts Senator Elizabeth Warren is urging a 75 basis point reduction in interest rates from the Federal Reserve. Caitlin Long, founder of Custodia Bank, finds it intriguing to observe if Senator Warren’s opinions carry much influence in Washington D.C. Historically, she has labeled Jerome Powell, the central bank governor, as “dangerous,” which suggests he may not take her requests into account.
Let’s find out if Senator Warren retains her influence in Washington! She previously criticized Powell as a risky figure, and her supporters currently hold key positions in financial regulatory bodies. Will she score a 75, or will it become clear that she’s playing without proper attire?
— Caitlin Long (@CaitlinLong_) September 18, 2024
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2024-09-18 08:14