According to Odaily Planet Daily, Matrixport said in its report that Bitcoin is optimistic about the fourth quarter. The report pointed out that Bitcoin is experiencing the most challenging third quarter in history, and the recent price momentum has weakened, and the trading environment may last for several weeks.
From a technical perspective, Bitcoinâs trading range is narrowing, suggesting that it will soon break out of its consolidation period. Based on the Fedâs expectations of rate cuts and positive fourth quarter news, coupled with the potential boost from the results of the U.S. presidential election, Bitcoin will break out in the coming weeks.
The Fed did not adjust interest rates, and Chairman Powell said that if inflation develops as expected, it may decide to cut interest rates at the September meeting. Our inflation model predicts that CPI will gradually fall in the next 12 months, and interest rate cuts may continue for several quarters, with each reduction of 25 basis points, providing liquidity and stimulus for risky assets such as Bitcoin.
The current interest rate is 5.25% and the inflation rate is 3.0%, and the difference between the two reflects the restrictive interest rate policy of the Federal Reserve, and the central bank may cut interest rates significantly in the next 12 months. Bitcoin is about to enter its most challenging two months, with August returns generally sideways and September weak.
If Trump wins, his policies may boost the crypto asset market, reduce regulatory uncertainty, and promote innovation. Although Trump has not announced plans to use Bitcoin as a reserve asset, his attendance at the Nashville Bitcoin Conference sent a positive signal.
