Matthew Sigel, head of digital assets at financial behemoth at financial behemoth BlackRock, has predicted that Bitcoin, the leading cryptocurrency, is likely to show strong performance in the fourth quarter of the year.
Sigel is more bullish on the largest cryptocurrency following the most recent move by the Federal Reserve.
As reported by U.Today, the Fed opted for a larger-than-expected rate cut of 50 basis points on Wednesday. The move surprised the market since both PolyMarket bettors and professional analysts expected the central bank to settle for a smaller 25-basis point rate cut.
The price of Bitcoin soared sharply higher following the rate cut announcement. Earlier today, the bellwether coin surged to an intraday high of $63,882 on the Bitstamp exchange.
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Bitcoin is now up as much as 8% this September despite the fact that the largest cryptocurrency tends to underperform during this month. However, November tends to be the best-performing month for Bitcoin with an average gain of 37.9%.
The Fed's jumbo rate cut will create easier liquidity conditions. This will likely bode well for the riskier assets of Bitcoin.
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Sigel has pointed to the fact that the crypto king has historically had a tight positive correlation with money growth.
Recently, BlackRock published a new white paper that positions the leading cryptocurrency as a portfolio diversifier that can serve as a hedge against various macro risk factors.
The financial behemoth made waves in early 2024 with the launch of its record-shattering Bitcoin ETF.
