Fed rate decision may cause bitcoin to rise to $170000
Market analyst Christian Cifoa believes that a possible Fed interest rate cut is likely to push bitcoin to an all-time high above $150,000.
His analysis is based on parallels between the current market scenario and past instances of Fed rate cuts. Reflecting on the Fed's actions in July 2019, the expert noted bitcoin's rapid growth after the first rate cut - the asset rose from $7400 to $14,000 in a few weeks.
However, the downward trend continued until the start of the pandemic, which turned into a global economic collapse similar to the 2008 global financial crisis.
Moving forward to 2024, Cifoi believes that the upcoming Fed rate cuts expected in September, and possibly July or November/December, could have very different implications.
In this regard, Cifoi outlined two potential scenarios: an initial rate cut could trigger a euphoric market reaction, pushing bitcoin towards the $90,000-100,000 range.
Unlike in 2019, the analyst noted, with the emergence of spot bitcoin exchange-traded funds, Wall Street's involvement, and the exponential growth of bitcoin's market capitalization, BTC has transformed from a speculative asset to a more stable investment.
This stabilization makes it hopeful that bitcoin's value will fall into the $120,000 to $170,000 range, with its market capitalization rising to $1.4 trillion.