Bitcoin traders are sitting on the edge of their seats. The FOMC meeting is almost here, and everyone’s wondering how it will shake up the market. The Fed might cut interest rates, but no one agrees on how much. The big question is: will this fuel Bitcoin’s next big move, or will it cause a sell-off?
Bitcoin holds strong above $60K
Bitcoin’s price is holding steady above $60,000. This is great news for traders who saw it briefly dip below that level. Some are predicting that if Bitcoin can close above $61,900, we might see a breakout. But not everyone is so sure. Historically, September is a tough month for BTC, usually delivering negative returns. Even though Bitcoin has risen 4% in the past 24 hours, we can’t be too certain.
Some traders believe a rate cut from the Fed could inject more liquidity into the market. This would be a big boost for BTC. But others warn that if the cut is too big, it could signal economic trouble, which might lead to a sell-off.
Scaramucci sees a Bitcoin boom coming
SkyBridge Capital founder Anthony Scaramucci is confident that Bitcoin will hit new highs. He predicts that the Fed will cut rates by at least 150 basis points over the next 18 months. For Scaramucci, this is exactly what Bitcoin needs to reach record levels. He even sees Bitcoin hitting $100,000 by the end of the year.
Scaramucci’s optimism doesn’t stop with rate cuts. He’s also banking on new crypto regulations in the US, especially after the next presidential election. He thinks bipartisan support for pro-crypto laws will clear the way for Bitcoin to shine. This mix of policy and monetary easing has him feeling bullish.
Rate cuts split the market
The Fed’s decision has everyone guessing. Will they cut by 25 basis points or go for a larger 50? Some traders are betting on a big cut, while others are cautious. A small cut might boost markets and Bitcoin. But a larger cut could signal a weakening economy. This could hurt riskier assets like BTC.
Economists like Peter Schiff have a different take. He warns that rate cuts won’t help Bitcoin in the long run. Instead, he thinks it could hurt the dollar and lead to higher inflation. Schiff’s views are always controversial, but they make traders think twice before celebrating rate cuts.
Will Bitcoin rally or stall?
The big debate is whether these rate cuts will help Bitcoin push higher. While some expect a breakout, others are watching closely for signs of trouble. Traders are eyeing $61,900 as a key level. If Bitcoin breaks through that, we could be in for a rally. However, some think the economy might throw a wrench in the works.
Anthony Scaramucci is optimistic, but others, like Alice Liu from CoinMarketCap, warn that a 50 basis point cut could lead to a sell-off. The size of the cut is crucial, and so is how the market reacts to it. Either way, the next few days will be critical for Bitcoin. The FOMC’s decision will have a lasting impact on BTC, no doubt about it.
