The Federal Reserve has left open the possibility of further rate cuts, and China has also made its own cuts. Bitcoin experts are optimistic about the future, but uncertainty remains.
The next few weeks will be crucial for Bitcoin’s growth.
China also cuts interest rates following the US Federal Reserve
Federal Reserve officials have said they are open to further rate cuts, and the first round of cuts appears to have few political opponents . Minneapolis Fed President Neel Kashkari said:
“Even after the 50 basis point cut, the overall stance of monetary policy remains tight. I am comfortable with a larger first step, and going forward, I expect to see equilibrium, and perhaps smaller steps,” he argued .
It's not just the US, other major countries are taking similar measures. On Monday, China also cut interest rates and injected more than $10 billion of liquidity into its central bank, among other measures. In other words, the economic impact of the US rate cut is not localized, and market conditions could worsen further.
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Impact on Bitcoin
For some, this is a worrying possibility. For example, Wall Street strategist Ed Yardeni has been very pessimistic . In an interview, he warned of a “full-blown rally” in stocks and argued that the possibility of an economic downturn was small but not negligible.
He predicted that there is about an 80% chance of an uptrend and a 20% chance of a downturn. Bitcoin experts are more optimistic overall, but some reservations still remain.
“The good times are here to stay,” Arthur Hayes claimed in X Post, noting that Bitcoin’s price held up over the weekend, contrary to his previous skepticism . Contrary to his initial opinion that Bitcoin would not benefit from the drop, other experts have expressed similarly optimistic views in exclusive interviews with BeInCrypto, but there are some clues.
For example, Harsh Agarwal, investment lead at Cypher Capital, said that “if Bitcoin hits $68,000, it could generate $145 billion in profits.” He argued that several positive factors are converging, but that doesn’t guarantee success. Mithril Thakoor, CEO and co-founder of Vela, elaborated on these dynamics:
“The Fed’s rate cut on September 18th has woken up the crypto markets from their doldrums and provided the necessary catalyst for BTC to retest past highs. But before we get there, $64,000 has proven to be a key resistance zone and it remains to be seen whether BTC can break above this barrier convincingly,” Takor argued.
That said, there are plenty of positive signs, but that doesn’t mean a bull market is certain. The most important time for Bitcoin is the next few weeks, especially now that China has cut its own rates. Jonathan Hargreaves, Elastos’ global head of business development and ESG, told BeInCrypto that this market is unique and may not match past cycles.
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“Importantly, the broader economy will be more connected to these developments, particularly rate cuts in the US, India and China, as well as key regulatory decisions regarding crypto governance. Choices such as China’s aggressive rate cuts, tax policy and market access will have a significant impact on the peak and duration of this bull market,” Hargreaves told BeInCrypto.
