Bitfinex Analysts Predict a Sharp Fall in the BTC Price Post the US Fed Interest Rate Cut

Against the popular expectation that the proposed US Fed interest rate cut would push the Bitcoin price today up, cryptocurrency analysts have predicted a sharp fall

Despite popular anticipation that the proposed US Fed interest rate cut would propel the Bitcoin price today, cryptocurrency analysts have predicted a drastic decline in the BTC price following the said rate cut.

Fed Rate Cut & Bitfinex Analysts’ Prediction

Recently, Fed Chair Jerome Powell hinted at an interest rate cut announcement in September.

Typically, a rate cut is perceived as a positive development by the crypto community. Under normal circumstances, such a rate cut would lead to an increase in fund flow to the crypto market, as investors opt for risky assets like cryptos or safe assets like bonds in anticipation of higher returns.

However, according to Bitfinex analysts, this time the market is likely to behave differently.

They have predicted the possibility of a drop of at least 15% to 20%.

If the market does behave as predicted, the Bitcoin price would fall to a range of $40,000 to $50,000.

About The Volatile Month of September

For those who have been closely following Bitcoin’s historical price momentum, the prediction may not come as a huge surprise. Throughout history, the month of September has been particularly challenging for Bitcoin.

Analysts have also highlighted this unique historical price momentum of the month as one of the primary reasons to justify their forecast.

Bitcoin Market Overview

At the moment, the Bitcoin price stands at $56,497 – the lowest point the market has reached so far this month. Earlier, the market opened at $58,956.

Heavy selling pressure emerged on the first day of the month, dragging down the price to a low of $57,324. The next day, buyers took control of the market, pushing the price up to $59,143, defeating the sellers.

But, in the following days, the market saw the dominance of sellers.

Yesterday, a long red candlestick saw the price drop to $57,484. Today, the price is sharply moving downwards, indicating an increasing strength of sellers, as the market has seen the month’s highest 24-hour trading volume of $119.019M.

What Could Happen Next in the Bitcoin Market?

Markus Thielen, head of research at 10xResearch, hopes for a new bull run in the Bitcoin market. However, he has also predicted the possibility of the BTC price falling as low as $40,000 before the expected bullish momentum.

Some analysts believe that the Bitcoin market is currently in a consolidation phase, where long-term investors silently accumulate the asset, exploiting fear and confusion among short-term buyers.

A few others think that at present the BTC price is hovering around its Bull Market Support Band, which usually occurs when there is indecision in the market.

On a final note, we can say that Bitcoin traders are having a really tough time. The latest prediction made by Bitfinex analysts comes as a big blow to those who were expecting that the price would go up post the Fed rate cut implementation. Anyway, September is going to be a crucial month for the Bitcoin market.

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