Has a Bottom Been Found in Bitcoin? Bitfinex Analysts Answered, Warned Investors Ahead of FED Decision!

BitcoinWhile the FED interest rate decision is awaited, the price is trading below the critical level of $60,000.

BTC While downside risk in the price continues, analysts warn that volatility may increase ahead of the interest rate decision.

Volatility warning Bitfinex Analysts said investors will act according to whether the FED cuts rates by 25 or 50 basis points.

“We see that the potential for market volatility is quite high ahead of the Fed decision.

A rate cut of 25 or 50 basis points could shift market sentiment between bullish optimism and cautious risk aversion.

Meanwhile, Bitcoin’s correlation with stocks is intensifying, suggesting that movements in traditional financial markets could increasingly impact Bitcoin’s price.

Bitcoin has also diverged from gold, which reached a record high last week, suggesting that investors are turning to traditional safe-haven assets in a risk-averse environment.”

We Expect a 25 Basis Point Discount!

Despite rising expectations for a larger rate cut, analysts said they think a 25 basis point rate cut is more likely, saying:

“We think a little bit of stronger core inflation would cause the Fed to be more cautious about rate cuts. So we expect a smaller 25 basis point cut rather than a more aggressive 50 basis point cut.”

Bitcoin May Have Bottomed at $52,000!

Bitcoin Analysts also evaluated the price and said that the latest data showed that BTC bottomed around $52,000.

Analysts “Our previous view that this could be a potential local bottom was confirmed when Bitcoin fell to $52,000 levels on September 6. Prices have since risen by over 15%, supported by a significant increase in Bitcoin ETF net inflows of $403.9 million over the past week.” he said.

*This is not investment advice.