The crypto community is eagerly awaiting the Federal Reserve’s (Fed) rate cut announcement on September 18, which could significantly impact Bitcoin (BTC) and the broader financial landscape. This decision marks the first central bank rate cut since March 2020, amid the COVID-19 pandemic.
Market predictions are mixed, with CME Group’s FedWatch tool indicating a 59% chance of a half-percentage-point rate cut and a 41% chance of a quarter-point cut. By the end of 2024, there’s an expectation of up to 100 basis points in cuts, suggesting substantial rate changes in the remaining Fed meetings of the year.
Market expert Crypto Rover believes a 50 basis point cut could spark a Bitcoin bull run, citing favorable conditions. Analyst Lark Davis also predicts significant price increases for Bitcoin over the next 6-12 months if history repeats past trends following rate cuts.
However, not all analysts are optimistic. EmperorBTC expects an initial market pump followed by a dump due to profit-taking by short-term holders. Similarly, analyst Justin Bennett references the 2007 market performance during Fed rate cuts, suggesting potential similar downturns.
Divided sentiment persists, with NewsBTC reporting mixed forecasts from analysts like Doctor Profit. Despite this, Bitcoin has surged from $57,000 to $61,000, recording a nearly 6% increase in hours, in anticipation of the Fed's announcement.
