Bitcoin (BTC) is facing potential downward pressure ahead of the upcoming United States Federal Reserve interest rate decision on Sept. 18, after slipping below the crucial $60,000 support level.
The pending decision may lead to heightened price volatility for the pioneer cryptocurrency, depending on the outcome. Bitfinex analysts shared with Cointelegraph:
“Depending on whether the rate cut is 25 basis points or 50 basis points, market behavior could swing between bullish optimism and cautious de-risking in response to major macroeconomic adjustments. This expected volatility might be reflected in flows across ETFs and perpetual markets, which are likely to exhibit increased fluctuations.”
This forecast comes as the Federal Reserve is anticipated to announce its first rate cut since the onset of the COVID-19 pandemic.
More analysts are increasingly predicting a Bitcoin breakout in October, potentially spurred by the Fed’s interest rate cut.
Bitcoin climbed back above the $60,000 psychological mark on Sept. 14 for the first time since Aug. 30, but it soon relinquished this key support level.
However, the recent price activity suggests that Bitcoin may have already reached its floor. Bitfinex’s analysts explained:
“Our earlier view that Bitcoin’s dip to $52,756 on Sept. 6 might represent a potential local bottom has been substantiated. Prices have subsequently increased by over 15 percent, supported by a significant uptick in Bitcoin ETF net inflows of $403.9 million over the past week.”