With the Federal Reserve set to cut interest rates just days away, a cryptocurrency expert has shed light on the implications. BitcoinThe performance of the central bank after the interest rate cut, especially on September 18, has been the subject of much debate within society at large.
“High probability of a short-term Bitcoin panic”
In a cautionary post on X (formerly Twitter), popular market expert and enthusiast, Dr. Profit, wrote, issued a stern warning For Bitcoin investors, there may be a short-term panic in the wake of an impending interest rate cut by the Federal Reserve.
The analyst believes that as investors respond to changes in the economy, they may experience short-term sell-offs or market corrections. Despite these near-term volatility, the analyst remains optimistic about BTC Long Term Potential.
Specifically, Dr. Profit’s experts expect a short-term panic if the Fed cuts interest rates by 0.50%, especially with the possibility of Israel invading southern Lebanon. According to the expert, when the panic peaks, this chaos will provide investors with an opportunity to buy more Bitcoin, but for now, he is holding both long and short positions.
While Dr. Profit expects He stated that it is difficult to determine the next price point for Bitcoin, given the short-term volatility. However, he will maintain his positions, both spot and long, Between the $50,000 and $53,000 levels, which it entered during the previous Monday’s collapse. He also warned investors against scams, noting that crypto assets could see 100% price manipulation during this period.
Dr. Profit also noted that the Fed will disguise this fear as a response to geopolitical threats and use it as cover. As a result, the expert has set his risk management level at its peak until the end of the month, keeping his spot and long holdings safe with a stop loss at entry.
So far, investors are advised to worry more about surviving the coming panic in the near term rather than predicting. Next step for BitcoinStressing the need for a well-thought-out plan during such a period.
Potential impact on market movement
As the event approaches, Dr. Profitt stressed that there is a 50-50 chance of a 0.50% or 0.25% rate cut on Wednesday, September 18. However, he believes that a 0.25% rate cut could have a negative impact on the economy. interest rate cut It would be irrelevant given the current state of the market and economy.
Dr. Profit predicts that the market could see another “Bloody Monday” drop similar to what we saw last month if the Fed does not cut interest rates by 0.50%, but Jerome PowellThe Fed chairman wants to “avoid that.”
According to the expert, Powell is likely to emphasize that inflation has fallen faster than expected and that he is satisfied with the Fed’s aggressive rate hike plan. In addition, he will emphasize how things are improving economically without fear of recession, and that further cuts may be imminent.
Featured image from Unsplash, chart from Tradingview.com