Bitcoin (BTC) time is up: Fed interest rate decision is on the horizon.

The Fed interest rate decision on September 18 seems to determine the fate of Bitcoin (BTC).

Bitcoin could rise to $65,000 after the expected interest rate cuts this week. However, analysts believe that US election uncertainty will negatively affect cryptocurrencies. According to Australian crypto trading firm Zerocap, Bitcoin could test $53,000 or make a sharp rise to $65,000 after the Fed's interest rate decision on September 18.

Jonathan de Wet, chief investment officer of Zerocap, told Cointelegraph that the market currently estimates that there is a 62 percent chance that the Fed will cut interest rates by at least 50 basis points. With the change in expectations, the Bitcoin price had moved towards $60,000 on September 13.

Wet believes that it is difficult to predict price action due to uncertainty about the impact of the rate cuts, and that the US elections in November are further complicating matters. “Given that the Fed has waited so long to make its first cut, Zerocap is leaning towards a 50 basis point expectation rather than a 25 basis point expectation,” Wet said.

The latest data from CME Group’s FedWatch Tool shows a 62% chance of a 50 basis point rate cut on September 18. The upcoming rate cuts have been the source of heated debate in the market, with many analysts divided on whether the upcoming rates will be bullish or bearish for risky assets such as cryptocurrencies.

Historically, investors are expected to turn to riskier assets due to the reduced financing costs following rate cuts. However, some analysts believe that if the economic contraction that followed similar rate cut cycles in 2001 and 2007 were to occur today, the opposite effect could be seen. Experts are much more concerned about the recession turning into a financial crisis.

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