Jerome Powell

Chair

Bitcoin

Reserve

According to analysts, a larger-than-expected interest rate cut could paradoxically lead to a decline in Bitcoin’s price. As the Federal Reserve prepares to announce its decision on interest rates this Wednesday, some experts caution that an aggressive cut may harm Bitcoin (BTC) and other risky assets. 
While lower interest rates typically increase demand for cryptocurrencies, a dramatic reduction might signal deeper economic concerns, prompting investors to pull back from riskier investments. 
Shannon Saccocia, Chief Investment Officer at Neuberger Berman Private Wealth, told MarketWatch that a larger-than-expected rate cut could indicate that the economy is in worse shape than anticipated, leading to a sell-off in assets like Bitcoin. 
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-15074" src="https://www.turkishnyradio.com/wp-content/uploads/2024/09/showing-Bitcoin-facing-potential-risks-due-to-an-interest-rate-cut-by-the-Federal-Reserve-The-image-should-featur.webp" alt="showing Bitcoin facing potential risks due to an interest rate cut by the Federal Reserve The image should featur" width="1792" height="1024" title="Analysts Warn: A Rate Cut Could Bring an Unexpected Bitcoin Price Shock 20" srcset="https://www.turkishnyradio.com/wp-content/uploads/2024/09/showing-Bitcoin-facing-potential-risks-due-to-an-interest-rate-cut-by-the-Federal-Reserve-The-image-should-featur.webp 1792w, https://www.turkishnyradio.com/wp-content/uploads/2024/09/showing-Bitcoin-facing-potential-risks-due-to-an-interest-rate-cut-by-the-Federal-Reserve-The-image-should-featur-768x439.webp 768w, https://www.turkishnyradio.com/wp-content/uploads/2024/09/showing-Bitcoin-facing-potential-risks-due-to-an-interest-rate-cut-by-the-Federal-Reserve-The-image-should-featur-1536x878.webp 1536w" sizes="(max-width: 1792px) 100vw, 1792px"> 
This sentiment was echoed by Dave Birnbaum, Vice President of Product and Marketing at Coinbits, writing for Forbes. He noted that if the Fed hints at deeper economic worries, “market participants may pull back from assets perceived as risky, including Bitcoin.” 
Crypto investors are hoping for another rally similar to previous cycles. In October 2019, the Fed implemented three cuts of 25 basis points, described by Fed Chair Jerome Powell as a “mid-cycle adjustment.” This period, along with the massive fiscal response to the COVID-19 pandemic, saw Bitcoin’s price surge over 1,300%, surpassing $60,000 by 2020. 
For ongoing updates on Bitcoin and the broader crypto market, stay tuned to Turkish NY Radio.

Analysts Warn: A Rate Cut Could Bring an Unexpected Bitcoin Price Shock

TNYR

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