Bitcoin $62,000. What Experts Predict Now
Following Fed rate cuts, Bitcoin broke $62,000. What Experts Predict Will Happen Next
A gauge of the biggest digital assets, the CoinDesk 20, is up 3.4%. Additionally, traders in the polymarket are betting on four to five more rate cuts this year.
The Federal Reserve lowered interest rates by 50 basis points, and additional reductions are anticipated to bring the median benchmark rate down to 4.4% by the end of the year.
There is significant pessimism in the market over the longevity of the cryptocurrency market rally, even with the rate drop.
Notable cryptocurrencies enjoyed gains, with Solana’s SOL rising by 6%, followed by BNB, XRP, and Cardano’s ADA.
Furthermore, there is a noticeable desire for additional rate reductions, as evidenced by market wagers on Polymarket that reflect expectations of ongoing Fed monetary easing.
Despite doubts from certain market observers over the sustainability of the rise, digital assets saw gains during the East Asia trading day thanks to a 50 basis point drop by the Fed and the first bitcoin (BTC) purchase by a presidential candidate.
Bitcoin Price History Now
According to the Fed’s quarterly economic prediction, Fed members anticipate that median benchmark rates would drop to 4.4% by year-end, as stated. This represents an additional 50 basis points (bps) of rate decreases in the next two Federal Open Market Committee (FOMC) meetings.
Bitcoin has increased 2.4% over the past day to trade at over $62,000.
A gauge of the biggest digital assets, the CoinDesk 20 (CD20), is up 3.4%.The overall cryptocurrency market increased.
Among majors, Solana’s SOL increased by 6% to lead gains; BNB Chain’s BNB, xrp (XRP), and Cardano’s ADA all saw increases of up to 4.5%. Dogecoin and Shiba Inu are two memecoins that saw 4% increases.
Traders anticipate a fleeting surge.
The Head of Institution at ByBit, Chris Aruliah, expressed conflicting opinions in an email regarding the rate cut’s effects on the cryptocurrency market.
Aruliah issued out a statement via email, saying, “The broader global economic slowdown stipulated by softer economic indicators and geopolitical complexities is tempering investor sentiment.” “Therefore, it is imperative to be cautious regarding the possible hurdles given by economic uncertainty and market fluctuations, even though a 0.5% cut in the Fed’s policy rate may provide a short-term boost to the cryptocurrency market.”
Maelstrom’s Arthur Hayes contended in an interview with Coin Desk TV that rate cuts in general are not required and that a 50 basis point rate decrease would first cause a market rally but eventually uncover more serious problems in the global financial system, which would result in more price declines.
“In general, I believe that rate increases are inappropriate. The American economy, in my opinion, is doing fairly well. He stated in the interview that “if you’ve looked at the GDP prints over the last eight or nine quarters, it’s been consistent growth.” “If they decide to keep decreasing rates, inflation will pick up speed into the fourth quarter.”
He contended that while decreasing rates in the face of high inflation is viewed as a mistake, the U.S.
government’s massive spending is fueling rapid economic development, which helps Kamala Harris’s prospects of winning the presidency.
He said, “I believe that the response will be that they’re just going to do more of it and they’re going to make the problem even worse if the markets start to falter.”
According to a report from Presto Research, investor mood is still affected by worries about growth and a possible recession, and as a result, the market is still split on the consequences of the Fed’s 50 basis point decrease across asset classes.
“Growth concerns are evident, based on the market’s perplexity last night, and the market needs relief from them in order to rise. Now that we are solidly in the “good news is good news” camp, Presto wrote.
Bitcoin $62,000. There Will be More Cuts.
Traders on Polymer kit are optimistic that the Fed will continue to decrease rates for some time to come.
By year’s end, bettors are predicting a 41% likelihood of a 100 bps cut (implying another 50 bps drop is likely) and a 38% chance of a 125 bps cut.
Additionally, they are betting on a 26% chance of a 50 bps cut in November and a 65% chance of a 25 bps decrease.
There is general agreement that there is a high likelihood of another cut in December, with a 50% possibility of a 25 bps drop and a 33% chance of a 50 bps cut.
Moreover, Ale, the native token of the privacy-focused, zero-knowledge proof layer 1 blockchain supported by a hash key and listed on Coinable, has increased in value by more than 14%.
Fantom’s FTM and Sui’s SUI are both up double digits, while AI tokens are generally recovering.
The chipmaker’s stock has dropped 3% over the last five days, suggesting that the association between AI tokens and Nvidia is waning.
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