Last night, the US Federal Reserve (FED) announced that it had cut interest rates by 50 basis points after four years.
Following this decision, the price of Bitcoin rose above $62,000.
While the Bitcoin price rose in initial reaction, now analysts are trying to predict how the BTC price will move.
Bitcoin Rise Expectation Continues!
Speaking to DL News, CoinMarketCap chief researcher Alice Liu said that she expects new highs in the BTC price.
Noting that Bitcoin has risen by about 90 percent in the fourth quarter of the last decade, Liu said, “There is a chance that we will see a significant price increase in the rest of the year that could push Bitcoin towards a new record high.”
But Liu warned that the approaching U.S. presidential election and uncertainty over its outcome still risked hindering the rally.
Swan Bitcoin’s Steven Lubka said that falling interest rates stimulate the economy and lead investors to buy riskier assets such as stocks and cryptocurrencies, saying:
“Bitcoin is highly correlated with its liquidity environment, and this will support Bitcoin prices to move higher towards the end of the year and beyond.”
While analysts expect Bitcoin to rise from October on the back of Fed rate cuts, historical data showing bullish fourth quarters, and supportive macroeconomic events, Bernstein analysts made a dual forecast based on the US election results.
Accordingly, Bernstein analysts predict that if Trump wins, Bitcoin will rise to $90,000 this year, while if he loses, BTC will fall to $30,000.
Bitcoin continues to trade at $62,280 at the time of writing.
*This is not investment advice.