The first cryptocurrency rate may collapse to $40,000 after the rate cut Fed in the case of a bearish scenario. This scenario was not ruled out by Bitfinex, writes CoinDesk.
According to experts, a 25 bps easing of policy will be positive for markets. A 50 bps step will initially lead to a jump of 5-8%, followed by an increase in concerns about a downturn in the economy, which could trigger a deeper correction in risky assets.
Bitcoin could fall by 15-20% after the Fed meeting if the decision is accompanied by signs of a recession. This will lead to a drop in quotes to the $40,000-$50,000 range, analysts said.
K33 noted that the current month will create an attractive opportunity to buy digital gold given the seasonally strong end to the year.
According to analysts, the pressure of large sales from governments in various countries and Mt.Gox has largely eased. By the end of the year, about $14.5 billion will be redistributed among FTX creditors, some of which may go to the cryptocurrency market.
Earlier, QCP Capital suggested buying digital gold on corrections during September with subsequent profit-taking in October or closer to the end of the year, given its seasonality.
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Source: Cryptocurrency
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