Experts warn: Fed interest rate decision may have an earthquake effect on Bitcoin!

Bitcoin, the largest cryptocurrency by market value, is facing downward pressure ahead of the US Federal Reserve (Fed) interest rate decision to be announced tomorrow after losing its $ 60,000 support. The volatility that the interest rate decision to be announced at 21:30 GMT on September 18 after the Federal Open Market Committee (FOMC) meeting will create in the BTC price may be greater than expected.

Bitfinex analysts stated that the market reaction may change depending on whether the interest rate cut will be 25 or 50 basis points, emphasizing that this situation may increase risk appetite or create a cautious environment in the cryptocurrency market.

Experts believe that it is more likely that the Fed will start the first reductions with 25 basis points, as it did during the pandemic, contrary to the general market expectation of 50 basis points. According to CME FedWatch, which measures expectations through option markets, the probability of a 25 basis point rate cut is 33 percent, and the probability of a 50 basis point rate cut is 67 percent.

If the US Federal Reserve makes a 25 basis point cut in line with analyst views, investors may act more cautiously. This possibility could pull Bitcoin and altcoin prices back with a potential decrease in risk appetite. Bitfinex experts describe the Bitcoin price falling to $52,750 on September 6 as a bottom point. Following this decline, an inflow of more than $400 million from spot BTC exchange-traded funds (ETFs) pushed the price up 15 percent to $59,000.

According to the report, the $BTC price may fall to $50,000 in the short term before the Fed's interest rate decision. In the medium term, expectations are more positive.

Considering that the last quarters of the year have been good for cryptocurrencies, Bitfinex experts believe that Bitcoin could see $92,000 by the end of 2024.

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