Originally published on: September 17, 2024
Jonathan de Wet, the Chief Investment Officer at Zerocap, has shared insights on the unpredictable nature of Bitcoin’s price post the recent Federal Reserve rate decision. With the potential for Bitcoin’s price to range between $53,000 to $65,000, the market is experiencing uncertainty amidst various factors at play.
*Fed Rate Cut Speculations and Market Volatility*
Following the Fed’s potential decision to cut rates by at least 50 basis points (0.5%), Bitcoin witnessed a brief surge to $60,000 on Sept. 13. However, de Wet emphasizes that predicting Bitcoin’s direction amidst looming uncertainties remains challenging. With the upcoming US election adding to the complexity, market players are cautious about making concrete forecasts.
*Market Outlook and Influencing Factors*
At present, Bitcoin is trading around $58,000, reflecting a fluctuating trend since the rally to $60,000. The impact of robust CPI and PPI inflation data has been significant in the recent price movements. Zerocap leans towards a bolder approach, advocating for a 50 basis point rate cut, anticipating a cycle of rate cuts that could bolster risk assets until the year-end.
*Future Rate Cuts and Market Sentiment*
Market participants are closely monitoring the expected 62% chance of a 50 basis point rate cut on Sept. 18, as indicated by CME Group’s FedWatch Tool. The debate on the repercussions of rate cuts continues, with contrasting views on their effect on risk assets like cryptocurrencies. Historical data suggests a bullish outlook for risk sectors post rate cuts, yet concerns remain in light of previous recessions following similar monetary policies.
*Election Uncertainty and Market Dynamics*
The impending US presidential election, alongside factors like the debate performances and the candidates’ policies, casts a shadow of uncertainty over the crypto market. The potential impact of a Kamala Harris victory on the sector remains a topic of speculation, with investors closely monitoring political developments that could influence Bitcoin and other assets.
*Conclusion*
As the market navigates through the aftermath of the Federal Reserve’s rate decision and the upcoming US election, the trajectory of Bitcoin’s price remains unpredictable. Amidst evolving market conditions and external influencers, investors need to stay vigilant and adapt to the changing dynamics to make informed decisions in the crypto space.
