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

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

Experts believe the Fed is likely to start the first cuts with 25 basis points, as it did during the pandemic, versus the general market expectation of 50 basis points. According to CME FedWatch, which measures expectations through options 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 cuts interest rates by 25 basis points in line with analysts’ views, investors may act more cautiously. This possibility could lead to a decline in Bitcoin and altcoins’ prices with a potential decline in risk appetite. Bitfinex experts describe Bitcoin’s drop to $52,750 on September 6 as a bottom. Following this drop, an inflow of over $400 million from exchange-traded funds (ETFs) pushed Bitcoin’s price up 15 percent to $59,000.

According to the report, the price of $BTC may drop to $50,000 in the near term ahead of the Fed's interest rate decision. In the medium term, the outlook is more positive.

Given that the last quarters of the year have been good for cryptocurrencies, Bitfinex experts believe that Bitcoin could reach $92,000 by the end of 2024.#MarketDownturn #BinanceTurns7 #TopCoinsJune2024 $BTC