Bitcoin Price Prediction: Fed Rate Cut Could Spur Short-Term Rally or Significant Selling Pressure

IconCryptoNewsTerminal Staff12 Jul, 2024

cryptonews.jpg

Bitcoin Price Prediction: Fed Rate Cut Could Spur Short-Term Rally or Significant Selling Pressure

Markus Thielen, founder of crypto market analysis firm 10XResearch, told CoinDesk that if the U.S. Federal Reserve (the Fed) cuts rates in September because inflation is easing, “bitcoin could rally in the short term.”  However, he added that if the Fed cuts because of concerns over economic growth rather than easing inflation, bitcoin could face significant selling pressure.  “Historically speaking, bitcoin has rallied the most when the Fed stops, or pauses, their rate-hike cycle,” Thielen explained. “Just look at 2019, when the Fed started cutting rates that year and bitcoin rallied 19% in a week. However, BTC fell 33% in the second half of that year because that easing was done due to economic uncertainty.”

Related News