Bitcoin Could Tumble 15-20% If Fed Cuts Interest Rates As Expected: Analysts Lay Out The Bear Thesis
Portfolio Pulse from Aniket Verma
Analysts at Bitfinex predict Bitcoin could drop 15-20% if the Federal Reserve cuts interest rates, due to its growing correlation with traditional financial assets. This comes amid increased volatility and a recent 4% drop in Bitcoin's price.
September 04, 2024 | 7:44 am
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Bitcoin could see a 15-20% decline if the Federal Reserve cuts interest rates, as predicted by Bitfinex analysts. The cryptocurrency's increasing correlation with traditional financial assets and recent volatility are key factors.
The potential rate cut by the Fed could make riskier assets like Bitcoin more attractive, but the analysts at Bitfinex suggest that Bitcoin's growing correlation with traditional financial assets could lead to a decline. The recent 4% drop in Bitcoin's price and its historical volatility in September support this bearish outlook.
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