Bitcoin Rally: Traders Eye Fed Rate Cut, Could BTC Hit $70K?

by | Sep 18, 2024 | Latest News | 0 comments

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Can Bitcoin Hit $70K? Fed Rate Cut Might Be Key

Bitcoin’s price is once again in the spotlight as it inches closer to a crucial level ahead of the Federal Reserve’s upcoming rate cut decision. The cryptocurrency recently crossed the $60K mark, gaining over 4% in just 24 hours. But the real test lies ahead – will the Fed’s expected rate cut be enough to push Bitcoin beyond $61,900 and trigger a rally to $70K?

Bitcoin’s Technical Breakout: $61,900 Is the Magic Number

Popular crypto strategist, Rekt Capital, highlights that Bitcoin has been forming lower highs since late July. For BTC to break its current pattern and enter an upward trajectory, it needs to close firmly above $61,900. If that happens, Bitcoin could be on its way to another major rally, potentially hitting $70K.


Historically, Bitcoin sees a breakout about 150-160 days after a halving event, with analysts predicting that this September could be a crucial turning point. However, September has typically been a weak month for Bitcoin, with average losses of around 4.48%. In contrast, October usually brings gains, with an average increase of 22.9%. So, it’s possible we’re in the final phase of consolidation before a significant upward movement.

Fed Rate Cut: A Blessing or a Curse?

The US Federal Reserve is expected to announce a rate cut at the upcoming FOMC meeting, likely between 25 and 50 basis points. The potential impact of this on Bitcoin has sparked a debate among analysts.

The general consensus is that a rate cut would increase liquidity, which could boost risky assets like Bitcoin. However, not everyone agrees. Economist Peter Schiff, a long-time Bitcoin skeptic, warns that the rate cuts might backfire. According to Schiff, lowering rates could crush the US dollar and trigger inflation, which might not be favorable for Bitcoin in the long run.

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On the other hand, SkyBridge Capital founder, Anthony Scaramucci, is bullish. He believes that even if Bitcoin doesn’t immediately soar, the Fed’s decision will eventually propel it to new highs by the end of Q4.

Market Sentiment Divided

While some see the Fed’s move as a catalyst for a Bitcoin rally, the market is divided. Senator Elizabeth Warren has called for a larger 75 bps rate cut, but it’s unlikely that the Fed will go that far. However, even a smaller cut could bring short-term gains for Bitcoin, as traders and investors flock to riskier assets amid looser monetary policy.

What’s Next for Bitcoin?

All eyes are on the Fed as the market awaits its decision. If Bitcoin can hold steady above $61,900, a rally to $70K could be on the horizon. But with mixed market sentiment and the potential for inflation, the outcome is far from certain.

As always in the volatile world of crypto, traders should proceed with caution, keeping a close watch on both technical indicators and macroeconomic events.

 

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