Fed Rate Cut Could Push Bitcoin Down 20%: Analysts

Analysts say the long-awaited interest rate cut by the US Federal Reserve could push Bitcoin lower — in the opposite direction to what many market participants were expecting — and potentially send its price to levels not seen since February.

“If we were to speculate, we would caution against expecting a 15-20 percent drop when rates are cut this month, with a bottom of $40,000-$50,000 for Bitcoin,” Bitfinex analysts wrote in a note dated September 2.

The Bitfinex analysts backed up their claims by emphasizing that September has historically been a “volatile month” for Bitcoin (BTC), and that the Fed’s expected rate cut only adds “another layer of complexity, potentially exacerbating market volatility.”