Analysis of Bitcoin Market and Fed Interest Rate Cut Expectations
Bitcoin Market Projections
- A significant uptrend in the cryptocurrency market is anticipated for October 2024 based on Bitcoin's historical monthly price patterns.
- Analysis from FMT Investment Advisory indicates a strong bullish market in the upcoming fall season.
FMT Investment Advisory, a fiduciary asset manager specializing in the "new economy," highlighted Bitcoin's consistent moves in alignment with the liquidity cycle. Insights from BitcoinStrategyPlatform demonstrate that Bitcoin's post-2024 halving price trends mirror historical halving cycles.
Historical data on Bitcoin monthly prices suggests a promising bull run approaching in October.
The trend depicts a recurring pattern where Bitcoin tends to initiate substantial bullish trends in October after relatively subdued summer months, based on data from 2013 to 2023.
Federal Reserve Interest Rate Cut Prospects
- The Federal Reserve is expected to reduce US interest rates in September, as forecasted by FMT Investment Advisory.
- Recent pronouncements by the Federal Reserve hint at a potential rate cut in the upcoming month.
In a press briefing on July 31, Fed Chair Jay Powell mentioned the likelihood of decreasing the policy rate in the imminent meeting. The Federal Open Market Committee (FOMC) deliberated on rate reduction possibilities during their recent session.
Although significant progress has been made towards the inflation target of 2%, the FOMC remains cautiously optimistic and requires additional assurance before deciding on a rate cut.
Bitcoin's price reacted to the Federal Reserve's decision to maintain rates, dipping below $65,000. However, it rebounded to approximately $64,000 following the Bitcoin Conference, where notable support for the cryptocurrency was evident.
