Bitfinex analysts said that the US Federal Reserve’s interest rate cut will have unexpected consequences for the cryptocurrency market. According to experts, the Bitcoin rate could fall by one-fifth.
Bitfinex reminded that September is traditionally considered a weak month for the first cryptocurrency, and there is a possibility of increased price fluctuations:
“These are challenging times for traders. The Fed’s interest rate decision is scheduled for September 18. Market sentiment is optimistic after Fed Chairman Jerome Powell’s August speech that “the time has come.” Bitcoin could fall 15-20%.”
Typically, investors view riskier assets like Bitcoin as more attractive when interest rates fall, experts say. However, this month the situation may develop according to a different scenario, and Bitcoin may bottom at $40,000-50,000. Only after reaching the bottom will the cryptocurrency be able to switch to a bullish trend, Bitfinex analysts believe.
Earlier, Tom Lee, founder of investment company Fundstrat Global Advisors, warned that the crypto market will be very volatile in the coming months, but investors will be able to use the “buy on the dip” strategy.
