US Fed rate cut could push Bitcoin down 20% — Analysts
Bitfinex says it’s a “challenging time” for Bitcoin traders as the US Fed’s widely expected rate cut could lead to a drop in Bitcoin’s price and not a boost as hoped by the market.
A long-awaited United States Federal Reserve interest rate cut could push the price of Bitcoin down — the opposite direction of many market participants’ expectations — and possibly cause it to dive to levels not seen since February, analysts say.
“If we were to speculate, we would caution to expect a 15-20 percent decline when rates are cut this month, with a bottom of $40-50k for BTC,” Bitfinex analysts wrote in a Sept. 2 note.
Bitfinex’s analysts backed up their claims by reiterating that September has historically been a “volatile month” for Bitcoin (BTC), and the anticipated Fed rate cut only adds another “layer of complexity, potentially exacerbating the market’s volatility.”
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Author: Ciaran Lyons
