While many expected September to be one of the strongest months for Bitcoin (BTC), the largest cryptocurrency unexpectedly fell on the last day of the month. The price fell 3% to $62,989 on September 30.
Fed Interest Rate Announcements Did Not Affect Cryptocurrency Market
This drop surprised investors and affected the rest of the cryptocurrency market, causing liquidations worth $226.55 million. According to Coinglass data, this sudden drop in Bitcoin triggered a general volatility in the market.
Moreover, this decline occurred despite the fact that US Federal Reserve Chairman Jerome Powell indicated that they could make additional interest rate cuts during the year in his speech before the National Association of Business Economics in Nashville. Powell said the following:
Going forward, if the economy generally develops as expected, policy will move toward a more neutral stance over time. But we are not on a predetermined course. The risks are two-sided and we will decide from meeting to meeting.
Powell said that following the historic interest rate cut in September, there could be two more 25 basis point cuts this year. These cuts will come if the economy moves in the right direction.
Analysts Expect Bitcoin to Rise
Analyst RektCapital noted that 163 days have passed since the block reward halving, and historically, this period has preceded a boom for Bitcoin. After the block reward halving in 2020, Bitcoinâs price entered a relatively stable period, allowing investors to buy before the price of Bitcoin increased significantly.
RektCapital underlined that Bitcoin began to show a strong upward movement in mid-October, 163 days after the block reward halving in 2020. However, he emphasized that this model is speculative and there is no guarantee that historical patterns will repeat.
Considering the current market situation and uncertainties, it is not clear whether an upward trend similar to the 2020/21 period will occur in the near future.
Bitcoinâs current volatility and signals of possible additional rate cuts from the Fed are creating uncertainty in the cryptocurrency market, requiring investors to remain cautious. While historical data points to a potential uptrend, it is difficult to make a definitive prediction about the future of the market.
Bitcoin fell 3 percent in the last 24 hours, falling to $62,989.
This decline occurred despite the Fed signaling two additional rate cuts by the end of the year.
According to analysts, there is a possibility that Bitcoin will rise after the block reward halving.
