Massive Bitcoin Rally Predicted For Next 6 Months After Fed Rate Cut
The post Massive Bitcoin Rally Predicted For Next 6 Months After Fed Rate Cut appeared on BitcoinEthereumNews.com.
As the crypto community awaits the Federal Reserve’s (Fed) rate cut announcement on September 18, the stakes are high for Bitcoin (BTC) and the broader financial landscape. This upcoming decision marks the first central bank rate cut since the Fed slashed its key rate to near zero in March 2020 amid the COVID-19 pandemic. Will A 50bps Cut Spark A Bitcoin Bull Run? According to CME Group’s FedWatch tool, markets are currently pricing in a 59% chance of a half-percentage-point rate cut and a 41% chance of a quarter-point cut. There’s an overwhelming expectation that by the end of 2024, the Fed could implement up to 100 basis points in cuts, with nearly 60% odds of 125 basis points. This suggests that investors anticipate at least one or two substantial rate cuts in the three remaining Fed meetings of the year, starting with this week’s announcement. The potential effects of a 50 basis point cut remain hotly debated within the crypto industry. Market expert Crypto Rover argues that such a cut could reignite a bull run for Bitcoin, stating that the conditions could lead to “super bullish” prospects. Similarly, analyst Lark Davis recalls how Bitcoin previously surged following past rate cuts, predicting that if history repeats, the next 6-12 months could see significant price increases for the largest cryptocurrency on the market. Optimism Vs Historical Caution In Crypto Market In addition to optimism and bullish expectations, other analysts express caution. EmperorBTC predicts an initial market pump following the rate cut, driven by cheaper borrowing costs. However, the analyst warns of profit-taking by short-term holders leading to a subsequent market dump, suggesting a “sell the news” scenario that could leave many investors disillusioned before the market stabilizes and resumes growth. On the other hand, technical analyst Justin Bennett offers a more cautionary…
Filed under: News - @ September 18, 2024 2:20 am