Analysts at 10x Research have presented a forecast of the crypto market’s reaction to the US Federal Reserve’s interest rate cut. According to experts, the first cryptocurrency will react differently than the community expects.

Experts noted that a possible reduction in the interest rate by 50 basis points (0.5%), which could be announced at the meeting of the US Federal Reserve System (FRS) on September 17, will negatively affect the exchange rate of Bitcoin and other cryptocurrencies.

“A sharp rate cut is a sign of economic concern, not confidence. While a 50 basis point rate cut could signal deeper concerns, the Fed’s primary focus will be on mitigating economic risks, not managing market reactions,” analysts said.

In their opinion, the community’s expectations for an increase in the value of the first cryptocurrency may not come true, since there are no catalysts for Bitcoin growth, and the Fed is focused exclusively on fighting inflation.

In addition, a 50 basis point rate cut at once could indicate that the Fed is lagging in combating the looming economic downturn in the labor market, according to experts at 10x Research.

Earlier, Bernstein experts described a possible scenario for the development of events on the American cryptocurrency market, including the consequences of the victory of Democrat Kamala Harris in the upcoming US presidential elections.