As traders prepare for the upcoming Federal Reserve rate cut decision, Bitcoin (BTC) remains strong, hovering above $60,000. This anticipation of lower interest rates has fueled market optimism, but questions remain on whether Bitcoin can sustain its recent momentum.
Bitcoin Holds Steady as Traders Await Fed Decision
Bitcoin traded just over $60,300 early Wednesday, extending its weekly gains by more than 7%. After a brief dip below $60,000, the crypto recovered, up nearly 4% in the last 24 hours. Other major cryptocurrencies, like Ethereum (ETH), Binance Coin (BNB), and Dogecoin (DOGE), showed slight increases, while XRP, Cardano (ADA), and Toncoin (TON) saw small losses.
Fed Rate Cut Could Shake the Market
The Federal Open Market Committee (FOMC) is set to announce its interest rate decision later today. Traders are betting on a 67% chance that the Federal Reserve will cut rates to a 4.5-5% range, down from the current two-decade high of 5.25%-5.5%. Historically, lower borrowing costs have boosted riskier assets, including cryptocurrencies.
There’s growing speculation on the size of the cut. A quarter-point cut (25 basis points) might continue to support market growth, while a half-point (50 bps) cut could signal deeper economic concerns, potentially triggering a market sell-off. Alice Liu, CoinMarketCap’s research lead, warns that a larger cut could lead to short-term pullbacks in Bitcoin and other assets if it indicates recession worries.
Q4 Could Be Strong for Bitcoin
Despite the uncertainty, some experts are bullish on Bitcoin’s future. Historically, Q4 has been a strong period for BTC, with average gains of 90.33% over the last decade. Speaking at the Token 2049 conference, SkyBridge Capital’s Anthony Scaramucci predicted a new record high for Bitcoin following potential rate cuts and clearer crypto regulations in the U.S.
