Will Israel-Gaza War Influence Bitcoin Rally Ahead of Fed Rate Cut?

The Israel-Gaza conflict might hinder a possible Bitcoin price surge after the Fed’s rate reduction announced following their meeting on September 18. Normally, an interest rate decrease is favorable for Bitcoin, but the ongoing Israel-Gaza tension could disrupt any positive growth Bitcoin was expected to experience.

The Israel-Gaza War Will Halt A Bitcoin Rally

The potential Israel-Gaza conflict might put a stop to Bitcoin’s upward trend due to an anticipated interest rate reduction by the U.S. Fed. Crypto expert Doctor Profit posited in a post on X that such war could induce greater fear among investors, causing market instability. Traditionally, assets with higher risk, such as Bitcoin and other cryptocurrencies, experience the greatest losses when conflicts intensify, prompting investors to liquidate their holdings.

In October 2023, a drop of more than 3% in BTC price was observed as tensions between Israel and Hamas appeared to intensify. Similarly, following Iran’s attack on Israel on April 13 this year, the value of Bitcoin plummeted by over 8%. Given these past occurrences, it seems unlikely that this situation will be any different if hostilities between Israel and Gaza escalate further.

In the Middle East, it appears that conflicts may escalate further, as Israel has broadened its strategic approach in the ongoing 12-month conflict with Hamas. The nation is contemplating beefing up its military presence in Lebanon, aiming to implement stronger actions against Hezbollah.

This event lines up with the anticipated Federal Reserve interest rate reduction, scheduled for announcement on September 18 after the FOMC meeting. Historically, such decisions have tended to boost Bitcoin, potentially causing a surge in its value. Yet, the ongoing conflict between Israel and Gaza might delay or even prevent this immediate increase in Bitcoin’s value.

Could The Conflict Be The Trigger For The Price Drop Below $50,000

As a crypto investor, I can’t help but wonder if the escalating Israel-Gaza conflict might push Bitcoin prices below the $50,000 mark. Some analysts are already anticipating that the leading cryptocurrency could experience additional price drops beneath this threshold. If tensions in the Middle East continue to heat up, these forecasts could very well materialize. Notably, economist Peter Schiff has predicted a potential Bitcoin crash, with prices potentially dipping down to around $42,000 and even lower, reaching as far as $20,000.

According to crypto analyst Zoran Kole in a recent post, he anticipates that the value of Bitcoin might fall into the lower $40,000 region. He emphasized a distinct Head and Shoulders pattern emerging in Bitcoin’s chart, which could potentially cause its price to dip below that level.

#Bitcoin Update:

As I return my golf swing to its starting point (the entry), I am confident that we’ll see score improvements in the low 40s soon.

A distinct Head and Shoulders chart configuration is emerging for Bitcoin, which could potentially take its value below the 40k mark if this pattern follows its typical course.

This coincides with a yearly open retest…

— Zoran Kole (@Captain_Kole1) September 15, 2024

Despite the lingering unpredictability surrounding the Israel-Gaza conflict, Doctor Profit remains optimistic about Bitcoin’s mid-term and long-term forecast. He anticipates that the anticipated surge in money printing due to a potential US Fed interest rate reduction will quell any market anxiety.

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2024-09-17 15:40