Fed Interest Rate Cut Awaits: bitcoin Poised for Rally?
Bitcoin is ready for a possible rise as the Fed makes a big decision soon. The digital coin climbed near $118,000, showing traders hope for a Fed rate cut.
Experts predict the Fed will lower interest rates by 0.25%. if so, traditional savings might be less appealing, pushing people too invest in alternatives like Bitcoin.
The dollar fell to its lowest level in four years, as the Fed announcement draws near. Reuters reports confirm the dollar’s drop.This decrease benefits Bitcoin, as people seek safe havens during uncertain economic times.
- BTC soared over 5% this week.
- The entire crypto market value went past $4 trillion.
Tom Lee,BitMine’s Chairman,forecasts a meaningful boost for Bitcoin and Ethereum after the rate cut. He sees a three-month rally in store for BTC, stating, “If the fed cuts rates, we’ll see impressive Bitcoin movement.”
As of now, Bitcoin sits at $117,319. Its rise hints at investors buying in anticipation. Traders predict aupto 25 basis point cut, stoking optimism.
Historically, similar Fed moves have energized Bitcoin prices. In December 2024, a 25 basis point cut ignited the crypto market. if this pattern holds, expect more Bitcoin gains.
The Relative Strength Index, a technical indicator, hit 71.99,signaling strong buying pressure but also caution against overheating. Yet it suggests buyers still lead.
If the Fed confirms a 25 basis point cut, Bitcoin might climb above $118,000. A more aggressive ease could send it even higher. If the Fed speaks tougher, BTC could fall towards $116,500-$116,700.
