Bitcoin, XRP, Ethereum Dip Post Fed’s Rate Cut: What’s Next For Crypto?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. 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.  Fed Chair Signals Uncertainty Over Further Rate Cuts

The selloff intensified after Fed Chairman Jerome Powell indicated during his press conferencethat another interest-rate cut in December “is not a foregone conclusion.” This uncertainty has contributed to market volatility, as both cryptocurrencies and stocks have rallied this year in anticipation of lower interest rates.

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. Related Reading Avalanche Expands In Asia — Japan’s Biggest Card Processor Joins The Network 3 hours ago

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.  Analyst Foresees Positive Momentum For Bitcoin

In his analysis, Peterson highlightedBitcoin’s performance surrounding Federal Reserve Federal Open Market Committee (FOMC) meetings and noted that since 2023, Bitcoin’s average movement after such meetings has been about 1.5 times its prior week’s performance.  Related Reading HBAR Slides 6% in 24 Hours as NYSE Listing Fails to Spark Rally, But Analysts Still See Upside 1 hour ago

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. The daily chart shows BTC’s drop following the Fed’s rate cut. Source: BTCUSDT on TradingView.com

Featured image from DALL-E, chart from TradingView.com