bullish

Jerome Powell

Chair

Bitcoin

<p>The cryptocurrency market has been on a rollercoaster ride in recent months, with Bitcoin, the world's largest cryptocurrency, experiencing significant price fluctuations. Following the Federal Reserve's unexpected announcement of a larger-than-expected interest rate cut, Bitcoin's price surged, surpassing its previous all-time high. </p>   
<p>This move has sparked intense speculation and debate about the future direction of the market. What should you expect next? </p>   
<h2 class="wp-block-heading" id="h-rate-cut-fuels-optimism"><strong>Rate Cut Fuels Optimism </strong></h2>   
<p>While the market had braced for a modest 25 basis point (bps) cut, the Fed announced a more aggressive 50 bps reduction. This bold move aligns with investors’ expectations for swift action in light of ongoing economic uncertainty. Powell confirmed that the new rates will range between 4.75% and 5%, marking a significant shift in monetary policy.</p>   
<p>Bitcoin’s potential to break its previous record of $73,000 has many speculating that this could ignite a rally across the $2.2 trillion cryptocurrency market. However, looming uncertainty around the upcoming U.S. elections may temper this optimism.</p>   
<h2 class="wp-block-heading" id="h-bitcoin-to-explode">Bitcoin to EXPLODE?!</h2>   
<p>Robert Kiyosaki, a prominent Bitcoin advocate, in a previous X <a href="https://x.com/theRealKiyosaki/status/1835080610878251311">post</a> had mentioned that the Bitcoin, gold, and silver prices are about to explode following the Fed's rate cuts. </p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/theRealKiyosaki/status/1835080610878251311 
 </div>
</figure>   
<blockquote class="wp-block-quote">
  
 <p><em>"the real assets could go up in price as fake money leaves fake assets and flee to real assets like real estate, gold, silver, and Bitcoin."</em></p> 
</blockquote>   
<h2 class="wp-block-heading" id="h-crypto-market-rallies"><strong>Crypto Market Rallies</strong></h2>   
<p>In response to the Fed's decision, the broader <a href="https://coinpedia.org/news/why-crypto-market-is-up-today-key-events-driving-bitcoin-and-altcoin-gains/" target="_blank" rel="noreferrer noopener">crypto market saw a 2% rally</a>, bringing its total value to $2.2 trillion. Ether (ETH) jumped 5% to $2,435, while Solana (SOL) surged over 6% to $138. Lower interest rates and cheaper borrowing could entice investors to take on more risk, driving further demand for stocks and crypto alike.</p>   
<p>Bitcoin’s price surge triggered significant liquidations across the crypto derivatives market. In the past 24 hours, $204.3 million in positions were liquidated, with $130.5 million coming from short positions. This shift indicates a strong market tilt as prices continue to climb.</p>   
<h2 class="wp-block-heading" id="h-election-impact-on-crypto"><strong>Election Impact on Crypto</strong></h2>   
<p>Several factors could overturn the potential rally, even before it gets some momentum. The major one being the <a href="https://www.youtube.com/watch?v=aP2Q_7rzNs0&amp;t=75s&amp;pp=ygUVY29pbnBlZGlhIHVzIGVsZWN0aW9u" target="_blank" rel="noreferrer noopener">upcoming US elections</a>. According to Bernstein analysts, a Trump win will drive Bitcoin to as high as $90,000 this year, and the cryptocurrency could fall to as low as $30,000 if Trump does not win.&nbsp;</p>   
<p>Greg Magadini, director of Derivatives at Amberdata stated “While elections may create regulatory headwinds, monetary policy is providing tailwinds, making Bitcoin the most likely winner.”</p>   
<h2 class="wp-block-heading" id="h-tug-of-war-between-bulls-and-bears"><strong>Tug of War Between Bulls and Bears</strong></h2>   
<p>Avinash Shekhar, CEO of Pi42, highlighted the ongoing battle between Bitcoin bulls and bears. “Short-term holders have been selling since August, suggesting a potential price floor, while long-term holders are maintaining support above $60,000,” he said.</p>   
<p>Shekhar emphasized the importance of the $60,000 level, calling it a “critical battleground.” He added, <em>“a high above $62K could steer in bullish momentum, while a breakdown below $60K could extend selling pressure."</em></p>   
<p>Also Check Out: <a href="https://coinpedia.org/news/is-crypto-bull-run-imminent-whats-next-after-the-feds-interest-rate-cut/" target="_blank" rel="noreferrer noopener">Is Crypto Bull Run Imminent? What’s Next After the FED’s Interest Rate Cut?</a></p>   
<p><strong>What do you think? Will Bitcoin soon achieve its new all-time high or the will the obstacles ruin everything? </strong></p>

Coinpedia Fintech News

Table of Contents

CoinPedia News

Other articles published on Sep 19, 2024

Bitcoin mining stocks jump as crypto fear and greed index rises

RISE, the Gigagas Layer 2, announces its $3.2M Seed Round

a16z Crypto Selects 21 Startups for Fall 2024 Accelerator Cohort

Why Experts Say This New Token Could Outperform Ethereum and Bitcoin in 2024!

Bitget and La Liga Unite to Inspire a New Era in Sports and Cryptocurrency

MoviePass Partners with Sui for USDC Payments

Join our free newsletter for daily crypto updates!