Crypto enthusiasts are turning optimistic, with the Managing Partner at Fundstrat Global Advisors expressing a bullish forecast for Bitcoin. He envisions a sharp increase for the cryptocurrency, potentially reaching a staggering price of $200,000 per coin before this year ends. This prediction is driven largely by the anticipation of the U.S. Federal Reserve’s looming decision to cut interest rates, which is expected to act as a significant stimulant for Bitcoin and the broader digital currency market.
Assets considered risky, such as Bitcoin, are likely to see a significant price science if the Fed introduces a cut in key interest rates. Predictably, this decision can be announced during the upcoming Federal Open Market Committee meeting, scheduled on Sept. 17. As these digital assets tend to be highly susceptible to monetary policy adjustments, the aforementioned date is of prominent significance.
“Cryptocurrencies like Bitcoin and Ethereum demonstrate a high sensitivity towards changes in monetary policy,” stated the Fundstrat managing partner. He emphasized on the importance of September 17, identifying it as a key driving force for respective price changes. He further backed his claim with a bold prediction, stating that Bitcoin could exceed the $200,000 mark by the year’s end.
At the time the original article was published, Bitcoin was trading at $112,963. The leading crypto asset had achieved a new all-time high just a month prior before experiencing a swift polarity change. Lowered interest rates can serve as an important macroeconomic driver for crypto markets, increasing liquidity and fostering conditions for rise in cryptocurrency valuations and sustained market growth.
However, projections of the highest achievable price for the asset before a significant downward pressure vary. Some analysts expect Bitcoin to reach up to $47,700, while others forecast a potentially low dip at around $16,000. It is evident that low interest rate can lead to increased liquidity, pouring into crypto markets and triggering price escalations and prolonged bull markets. Therefore, the Federal Reserve’s decision of a rate cut could greatly influence Bitcoin’s trajectory.
Admittedly, the Bitcoin market has been a recipient of positive price flexions following past rate cuts by the Federal Reserve. Last year, the central bank introduced three such cuts, each of which coincidently received by a rally in Bitcoin prices. However, the trend has not been replicated this year, as the Central Bank has been reticent in introducing further cuts.
The reasons behind the Federal Reserve’s hesitancy in commissioning further rate cuts this year might be associated with apprehension regarding an intensifying trade conflict. A rate cut amidst a trade war could potentially fuel inflation, a risk the central bank might not want to undertake. Such caution has left the crypto markets in anxious anticipation of the next move.
The cryptocurrency market dynamics have also been impacted by vocal criticisms from President Trump, who expressed dissatisfaction towards the Federal Reserve Chair, accusing him of delaying such crucial rate cuts. These outspoken comments have added another layer of uncertainty to the equation and have kept the markets on edge.
Another noteworthy development within the Federal Reserve was the appointment of a new board member in August. This individual possesses a favorable view of cryptocurrencies, further instigating discussions among crypto enthusiasts about the potential implications this could have on the Federal Reserve’s position on rate cuts, and ultimately, on Bitcoin prices.
The post Crypto Market Anticipates Skyrocketing Bitcoin with Potential Federal Interest Rate Cut appeared first on Real News Now.
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