Greed

United

Bitcoin

when

Arthur

According to a crypto analyst, the United States Federal Reserve’s move to lower interest rates was already priced into the crypto market, signaling that now might be the time to consider potential selling opportunities.
“The Fed put has also been anticipated by rate markets: in a sense, last week, the Fed was catching up with market expectations,” blockchain analytics firm Nansen principal research analyst Aurelie Barthere wrote in a Sept. 23 report shared with Cointelegraph.
<h2 id="having-skin-the-game-makes-sense-says-barthere">Having “skin the game makes sense,” says Barthere</h2>
“Keeping crypto allocation or skin in the game makes sense as the Fed has just given more juice to this bull market. But a lot is already in the price of risk assets,” Barthere added.
She explained that Nansen’s “comfortable” strategy is “trimming crypto allocation on rallies,” given the “asymmetry to the downside.”
Following the Fed announcing the rate cut, the market sentiment quickly turned positive per the <a data-ct-non-breakable="null" href="https://alternative.me/crypto/fear-and-greed-index/" rel="nofollow noopener" target="_blank" text="null" title="https://alternative.me/crypto/fear-and-greed-index/">Crypto Fear &amp; Greed Index</a>.&nbsp;
<figure>
 <img alt="Fed’s ‘juice’ into crypto has analyst eyeing ‘trimming’ opportunities" name="" src="https://s3.cointelegraph.com/uploads/2024-09/01922985-09c7-7991-8e36-e46d514280cd">
 <figcaption style="text-align: center;">
 The Crypto Fear &amp; Greed Index. Source: Alternative.me
 </figcaption>
</figure>
On Sept. 25, the index, which is a multifactorial measure of crypto market sentiment, climbed to a “greed” score of 59, a 14-point increase since the Fed <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/50-bps-fed-rate-cut-bullish-crypto-markets" rel="" target="_self" text="null" title="https://cointelegraph.com/news/50-bps-fed-rate-cut-bullish-crypto-markets">announced a 50-basis-point rate cut</a> on Sept. 18, when it was at 45 in the “fear” zone.
<h2 id="btc-price-holds-above-crucial-60-000-level">BTC price holds above crucial $60,000 level&nbsp;</h2>
Bitcoin’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) price quickly <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/https-www-cnbc-com-2024-09-18-fed-meeting-live-updates-traders-await-september-interest-rate-cut-html" rel="" target="_self" text="null" title="https://cointelegraph.com/news/https-www-cnbc-com-2024-09-18-fed-meeting-live-updates-traders-await-september-interest-rate-cut-html">reacted to the announcement</a>. Following the Fed’s decision on Sept. 18, it surged past $60,000 for the first time since Aug. 30 and came close to retesting $65,000 several times within the following seven days.
<figure>
 <img alt="Fed’s ‘juice’ into crypto has analyst eyeing ‘trimming’ opportunities" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0192297d-d46d-7c43-9796-5ff52043e139">
 <figcaption style="text-align: center;">
 Bitcoin reached $64,751 on Sept. 25. Source: TradingView
 </figcaption>
</figure>
At the time of publication, Bitcoin is trading at $63,759, according to TradingView <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTCUSD/" rel="nofollow noopener" target="_blank" text="null" title="https://www.tradingview.com/symbols/BTCUSD/">data</a>.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-tough-call-fed-rate-decision-zerocap" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-price-tough-call-fed-rate-decision-zerocap">Bitcoin price action ‘tough to call’ after Fed rate decision — Zerocap</a>
The Fed’s decision <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/50-bps-fed-rate-cut-bullish-crypto-markets" rel="" target="_self" text="null" title="https://cointelegraph.com/news/50-bps-fed-rate-cut-bullish-crypto-markets">marked the first rate cut since March 2020</a>, when the Fed <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-321-million-inflows-fed-50-bp-rate-cut#:~:text=The%20US%20Federal%20Reserve%20issued,over%20the%20COVID-19%20outbreak." rel="" target="_self" text="null" title="https://cointelegraph.com/news/crypto-321-million-inflows-fed-50-bp-rate-cut#:~:text=The%20US%20Federal%20Reserve%20issued,over%20the%20COVID-19%20outbreak.">reduced rates in response to the COVID-19 outbreak</a>.
Before the announcement, BitMEX co-founder Arthur Hayes argued at Token2049 in Singapore that the Fed rate cut <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/arthur-hayes-market-crash-rate-cut-prediction" rel="" target="_self" text="null" title="https://cointelegraph.com/news/arthur-hayes-market-crash-rate-cut-prediction">will likely drive a market drop</a> because it will “narrow the interest rate differential between the US dollar and the Japanese yen.”
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/lady-of-crypto-bull-market-plans-2025-hall-of-flame/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/lady-of-crypto-bull-market-plans-2025-hall-of-flame/">Lady of Crypto will be ‘all out of crypto’ by September 2025: X Hall of Flame</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Fed’s ‘juice’ into crypto has analyst eyeing ‘trimming’ opportunities

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