Recent discussions have centered on the future of Bitcoin and the potential influence of Federal Reserve decisions on the cryptocurrency market. Experts are evaluating whether Bitcoin’s value might fall below critical levels and the implications of possible Federal Reserve rate cuts.
The dialogue, moderated by Roundtable anchor Rob Nelson, featured insights from David Gokhshtein, CEO of Gokhshtein Media, and John Divine, Head of OTC Trading at BlockFills.
Gokhshtein highlighted that market fatigue and anticipation of forthcoming Fed rate cuts are key drivers of Bitcoin’s price movements. He stated, “The market is awaiting the Fed’s decision. Whether they announce a 0.25 or 0.50 basis point cut, I believe Bitcoin will start moving positively.”
Nelson expressed cautious optimism, saying, “I maintain my stance that Bitcoin won’t drop below $40,000, though I could be mistaken.” He also questioned whether the Fed would implement a rate cut in September, underlining the uncertainty surrounding the timing of such actions.
Currently, the CME FedWatch tool indicates a 70% probability of a 0.25-basis point cut and a 30% likelihood of a 0.50-basis point reduction.
Divine provided a broader economic perspective, asserting that rate cuts are likely inevitable. “Interest rate cuts are definitely on the horizon,” Divine remarked. He elaborated on the challenges facing banks, noting, “The only remedy is to enhance bond prices by lowering interest rates.” Divine also pointed out the Fed’s focus on unemployment and inflation is increasingly complicated by the pressures on bank balance sheets due to rising rates.
The Federal Reserve’s policy decision is scheduled for September 18.
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