Bitcoin May Surge as Analyst Predicts Major Fed Rate Cut and Market Shake-Up

Renowned crypto analyst Doctor Profit has made bold predictions about the Federal Reserve's upcoming meeting on September 18.

He expects the Fed to implement a 0.50% interest rate cut, despite market speculation about a potential 0.25% reduction.

FED Rate Cut Report: What’s Next?

Get ready for the big event on the 18th

Here’s what you need to know:

The market expects a 50:50, there’s a 50% chance we’ll see a 0.25% rate cut, and another 50% chance of a 0.50% cut. But remember when I told you two months ago that Jerome… pic.twitter.com/9ninSBIA0V

— Doctor Profit 🇨🇭 (@DrProfitCrypto) September 15, 2024

Doctor Profit, who previously forecasted a 0.50% cut for September, cites recent favorable CPI and PPI data as support for his prediction. He argues that a smaller rate cut might not address current economic challenges adequately and could potentially lead to another significant market downturn, similar to a recent “Blood Monday.”

He believes Fed Chair Jerome Powell will frame a larger cut as a proactive response to declining inflation and a more positive economic outlook, possibly signaling further rate reductions ahead.

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For Bitcoin and stocks, Doctor Profit warns of high volatility in the lead-up to the Fed’s decision, likening the market to a “casino.” He remains optimistic about Bitcoin’s mid-to-long-term prospects and advises traders to use short-term market dips to their advantage while managing risk carefully.

In the short term, Doctor Profit emphasizes the need for effective risk management strategies, such as setting stop-losses. He anticipates that increased money printing and cash injections will stabilize the market, leading to a more favorable environment by Q3 2025. As the Federal Reserve meeting approaches, analysts suggest that a significant rate cut could trigger a Bitcoin breakout in October.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.