Bitcoin’s Future Path

Following the announcement of the Fed’s rate cut, Bitcoin traded at approximately $117,000, according to data from cryptocurrency provider CoinGecko, remaining largely flat over the past 24 hours as investors had already priced in the rate cut. Subsequently, Bitcoin’s price slightly retreated to $116,600.

In contrast, both the tech-heavy Nasdaq index and the S&P 500 index declined. In the week leading up to the Fed’s latest decision, both cryptocurrency and stock markets had risen, with Bitcoin gaining 2% over the past week.

Gerry OShea, Global Head of Market Research at crypto asset management firm Hashdex, noted that Bitcoin’s reaction to the news was relatively “muted,” but he added, “other factors may drive Bitcoin’s price higher in the coming weeks, including corporate Bitcoin reserves and sustained demand for exchange-traded funds (ETFs).”

Stephane Ouellette, CEO of cryptocurrency-focused investment bank FRNT Financial, stated, “Wall Street is entering an unprecedented cycle of (currency) devaluation, a scenario not seen since 2021.”

“And Bitcoin is clearly a viable solution to such devaluation. This may not happen overnight, but we believe that as interest rates continue to decline, investors will gradually allocate more funds to Bitcoin to protect their purchasing power.”