Experts warn that a potential interest rate cut by the Federal Reserve could lead to a significant drop in Bitcoin's price, contrary to many traders' expectations.
Analysts suggest that a rate reduction could cause Bitcoin to fall by 15-20%, potentially dipping to levels not seen since February.
According to Bitfinex analysts in a September 2 report, September is historically a volatile month for Bitcoin. They believe that the anticipated Fed rate cut could further intensify market volatility. The analysts also pointed out that macroeconomic shifts could alter this forecast.
The Federal Reserve’s decision on interest rates is expected on September 18. While the market anticipates a rate cut following recent dovish comments from Fed Chair Jerome Powell, which often makes riskier assets like Bitcoin more appealing compared to traditional investments, uncertainty remains.
Bitcoin is currently trading at $56,600, showing a 4.3% decline over the past 24 hours. A 20% decrease from this price would bring Bitcoin to around $45,000, a level last seen on February 8. Markus Thielen of 10x Research mentioned that this price point could be crucial for the start of a new bull market.
In contrast, Joe Consorti from Bitcoin Layer views the $60,000 level as a consolidation zone for long-term holders. Meanwhile, trader Daan Crypto Trades notes that Bitcoin is currently hovering around its Bull Market Support Band, showing little movement in either direction.
Recent data from CryptoQuant CEO Ki Young Ju reveals a dramatic 75% reduction in net short positions for CME Bitcoin futures over the last five months.
A Bitcoin miner wallet, inactive for 15.7 years, recently came to life, transferring 50 BTC—valued at approximately $3.05 million—into another wallet.
Recent data reveals that Bhutan has unexpectedly taken the lead in state-held Bitcoin (BTC) reserves, boasting $782.46 million, significantly outpacing El Salvador, which holds $351.75 million.
Louisiana has become the latest U.S. state to accept cryptocurrency payments for state services.