As a seasoned crypto investor with years of market experience under my belt, I find myself at the intersection of excitement and caution as we approach today’s US Federal Reserve meeting. Having weathered numerous rate decisions and their subsequent impact on the market, I can say that the anticipation is always palpable, especially when it comes to Bitcoin.
Currently, the value of Bitcoin is hovering slightly under the significant $60,000 mark, reflecting market speculations surrounding today’s US Federal Reserve gathering, where they are expected to discuss potential interest rate adjustments and the FOMC meeting scheduled for 2:00 pm ET.
Fed Meeting Outcome and its Impact on Bitcoin Price?
The Federal Open Market Committee (FOMC) gathering, which started on September 17, will determine if they should lower or raise the interest rates. On September 18, the U.S. Federal Reserve is expected to announce their decision about the interest rates that have been fluctuating within the 0.50% to 0.53% range over the past four years. According to CME’s FedWatch Tool, it is almost certain (100%) that Fed Chair Jerome Powell will opt for a rate reduction.
Making a decision about interest rates is crucial, as it often signals the direction investors may take next. When the interest rate drops, this encourages both borrowing and spending, aiming to boost the economy. This move could lead to an increase in risk-taking assets such as stock markets and cryptocurrencies.
Because Bitcoin (BTC) is classified as a high-risk investment, many people assume that rate cuts by central banks will drive its price up. However, the situation isn’t always so straightforward. If the Federal Reserve’s decision differs significantly from what the market anticipates, it could lead to a reversal in Bitcoin’s price. Due to increased volatility, investors often choose not to trade on days when such unexpected news arises.
Will Fed Rate Cut Be a 25bps or 50bps?
Today’s Federal Reserve meeting decision on interest rates could result in a reduction of either 0.5% (or 50 basis points) or 0.25% (or 25 basis points).
- With 37% odds of a 25 bps rate cut, the target rate would go down from 525 to 550 to 500 to 525 range.
- A 50 bps rate cut is likely with 63% odds and would knock the interest rate down to 475 to 500 range.
Although some members of the FOMC suggested a 75 bps rate cut, it is unlikely as of now.
Bitcoin Price Forecast: Whales Sell Nearly $1.2 Billion BTC
Investors owning between 1,000 and 10,000 Bitcoins have sold off approximately 20,000 Bitcoins, equating to around $1.19 billion. This substantial sell-off occurred within a day among these groups of investors. This selling trend is noteworthy, particularly considering the upcoming Federal Reserve rate cut meeting, which is typically considered a positive sign for Bitcoin.
In theory, the FOMC meeting appears optimistic, but it’s doubtful that investors are anticipating a surge in risky assets. Instead, many traders seem to be gearing up for a ‘sell-the-news’ scenario.
On X (previously Twitter), JCharts shared his perspective about the potential future of Bitcoin’s pricing. He indicated a possible return to $61,000, followed by a potential drop to around $57,400.
On the other hand, QCP Capital posted its long-term bullish outlook in a recent Telegram post.
Beginning a series of interest rate decreases intended to bring rates back to normal boosts the appeal of hard assets as they serve as value holders. Although market fluctuations and steep drops are likely, remember these should not deter you from the road leading to increased Bitcoin prices. We recommend long-term investments with no cap on potential profits to take full advantage of possible dramatic increases in prices.
The optimistic viewpoint is evident in the S&P 500, which currently stands about 36.24 points lower than its record high of $5670.81. Many anticipate that the upcoming Fed meeting could drive the S&P 500 to a fresh all-time high.
Because Bitcoin’s value tends to move in tandem with the stock market, any positive impact from the stock market could boost Bitcoin’s growth. In this scenario, predictions for Bitcoin’s price suggest a possible reevaluation of key resistance levels at around $65,000 and $70,000.
Regardless of 25 bps or 50 bps, investors can count on volatility in the crypto markets and massive liquidations as a result of leverage trading.
Read More
- ENA PREDICTION. ENA cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- USD COP PREDICTION
- Red Dead Redemption: Undead Nightmare – Where To Find Sasquatch
- USD ZAR PREDICTION
- TAO PREDICTION. TAO cryptocurrency
2024-09-18 16:10