Fed Rate Decision to Impact BTC Price: Analysis Predicts Short- and Long-Term Movements

Fed Rate Decision to Impact BTC Price: Analysis Predicts Short- and Long-Term Movements

## Fed Rate Decision to Impact BTC Price: Analysis Predicts Short- and Long-Term Movements In its latest weekly analysis report, Bitfinex predicts that the upcoming US interest rate decision will significantly impact Bitcoin's (BTC) price in the short and long term. Impact of Rate Cut According to the report, if the Federal Reserve (Fed) cuts rates by 25 basis points, BTC's price could experience a long-term uptick due to increased liquidity and easing recession fears. Traders believe that a lower interest rate environment makes holding BTC more attractive, as it reduces the opportunity cost of holding non-yielding assets. Immediate Rise and Correction However, a 50 basis point cut could lead to an immediate rise in BTC's price, followed by a correction due to heightened recession fears. A more aggressive rate cut could signal that the Fed is concerned about a deeper economic slowdown, leading to increased uncertainty and risk aversion among investors. Long-Term Outlook After this month's rate cut, Bitfinex predicts that BTC's price will bottom out between $40,000 and $50,000. This range is based on technical analysis and historical price patterns. However, the report cautions that these predictions may change if the macroeconomic landscape changes significantly. Volatile Market Conditions The current market conditions for BTC remain volatile and uncertain. Traders should be aware of the potential risks and make informed decisions based on their own research and risk tolerance.