Last night, the US Federal Reserve (FED) announced that it had cut interest rates by 50 basis points for the first time in four years. Following this decision, the price of Bitcoin rose above $62,000.
Market Reaction to Rate Cut
Following the initial reaction to the FED's decision, analysts began predicting how the Bitcoin price would move next. Bitcoin's price has increased to $62,280.
Expectations of Further Bitcoin Rise
Speaking to DL News, CoinMarketCap chief researcher Alice Liu said that she expects new highs in the BTC price. She noted that Bitcoin has risen by about 90 percent in the fourth quarter of the last decade. Liu said: "There is a chance that we will see a significant price increase in the rest of the year that could push Bitcoin towards a new record high." However, Liu warned that the approaching U.S. presidential election and uncertainty over its outcome still risked hindering the rally.
Analysts' Predictions for the Future
Swan Bitcoin's Steven Lubka said that falling interest rates stimulate the economy and lead investors to buy riskier assets such as stocks and cryptocurrencies. He stated: "Bitcoin is highly correlated with its liquidity environment, and this will support Bitcoin prices to move higher towards the end of the year and beyond." Bernstein analysts made a dual forecast based on the US election results, predicting that if Trump wins, Bitcoin will rise to $90,000 this year, while if he loses, BTC will fall to $30,000.
Therefore, the FED's rate cut and macroeconomic events like the US elections have a significant impact on Bitcoin's price, and analysts continue to make predictions for the future.
Comments