On Wednesday, the Federal Reserve (Fed) announced a 25-basis-point rate cut from the previous rate of 4.25%, aligning with market expectations. Despite this bullish development being highly anticipated by top experts as the best catalyst for the remainder of the year, Bitcoin (BTC), XRP, and Ethereum (ETH) led the market downturn following the announcement.
If the Fed does not implement further rate cuts in December, it could lead to a rebound in the dollar, which would be detrimental for Bitcoin bulls.
Analyst Manuel Villegas from Julius Baer noted that options-derived implied movements for US equity indices suggest significant shifts around upcoming macroeconomic reports. He advised crypto investors to prepare for potential volatility.
However, market expert Timothy Peterson provided further insights on social media site X (formerly Twitter), predicting that the Bitcoin price could rise up to 12% over the next week, meaning that the leading crypto could surge toward $123,000.
With Bitcoin having gained 4% in the week leading up to the Fed’s decision, Peterson anticipates a subsequent increase of around 7%, with a potential range of 0-15%.
The FOMC, which sets US interest rates and guides monetary policy, often sees markets trade cautiously before meetings, followed by reactions once the uncertainty is resolved, with the expert concluding that despite the growing uncertainty, Bitcoin and the broader market could see a new leg up near record highs.
Featured image from DALL-E, chart from TradingView.com
