Bitcoin Experiences Decline to $63K Amid Fed’s Interest Rate Cut Hints

Bitcoin started the week on a downward trend, dropping in value despite the Federal Reserve’s indication of potential future rate cuts.

On September 30, Bitcoin (BTC) fell from a high of $65,634, marking approximately a 4% decrease to an intraday low of $63,049. As of the latest updates, Bitcoin was priced at $63,344, reflecting a 3.6% decline over the preceding 24 hours, based on data from Cointelegraph Markets Pro and TradingView.

Following a speech at the National Association for Business Economics in Nashville, Federal Reserve Chair Jerome Powell stated that any upcoming interest rate cuts are expected to be less aggressive than the recent 50-basis-point cut. Powell noted that if the economy evolves as anticipated, there may be two additional rate cuts in 2024, each at a 0.25% increment.

“This is not a committee that feels like it’s in a hurry to cut rates quickly.”

Powell clarified that the Federal Reserve is not on any predetermined course, and policy decisions will be made meeting by meeting, considering the risks on both sides.

This announcement came shortly after the Federal Open Market Committee (FOMC) reduced interest rates by 50 basis points, marking the first reduction since March 2020.

Futures markets indicate that the Fed is likely to adopt a cautious approach in its November meeting, with expectations for a quarter-point reduction, while traders anticipate a more assertive cut in December. According to the CME Group’s FedWatch Tool, the probability of a 0.5% rate cut at the December 18 FOMC meeting is approximately 48%.

Anticipations of a Bullish Q4 for Bitcoin

Despite the setbacks, Bitcoin traders remain optimistic for Q4. The recent weeks have seen major cryptocurrencies achieve gains, although Bitcoin faced a notable 11% drop between September 1 and September 6, during its historically challenging month. Nonetheless, the price rebounded after the recent Fed interest rate cut.

As per data from CoinGlass, Bitcoin is projected to conclude Q3 with a 0.6% increase, alongside a 7% rise in September.

Observations highlight that every election year has experienced positive performance in October, November, and December. One analysis suggested that each year with a strong September is followed by a bullish end to the year for Bitcoin.

“100% of election years had a green October, November, and December.”

This overview does not constitute financial advice. Engaging in investment and trading activities carries risks, and individuals are encouraged to conduct their own research prior to decision-making.