Bitcoin Rises as Analysts Debate Its Future After Fed’s Rate Cut

Bitcoin has surged 5.4% over the past week, driven by a 50 basis point interest rate cut from the U.S. Federal Reserve.

Despite this momentum, market experts remain split on the cryptocurrency’s direction for the rest of the year.

Tom Dunleavy from MV Global believes the current economic conditions favor risk assets like Bitcoin, with signals from the U.S. economy indicating growth rather than a recession. He also noted that markets are anticipating further interest rate cuts, which could boost earnings expectations.

VanEck’s Matthew Sigel added that the U.S. government’s temporary spending bill, aimed at avoiding a shutdown, could support Bitcoin by reducing volatility.

Bitget analyst Ryan Lee pointed to positive trends like increased accumulation by major investors and rising inflows into Bitcoin ETFs. However, he warned that ongoing volatility could pull the price back to $58,000 if market conditions worsen.

Other analysts remain cautious, highlighting Bitcoin’s ongoing downtrend since March. Nansen’s Aurelie Bathere mentioned that while U.S. economic data has been strong, overpriced equities could lead to further downside for risk assets like Bitcoin.