Bitcoin could fall 20% if Fed cuts interest rates

Contrary to market expectations, an analysis has emerged that Bitcoin prices may fall.
For example, a Federal Reserve interest rate cut could have a negative impact on Bitcoin's price, dragging it down to levels not seen since February.
Analysts said on the 2nd that if interest rates are lowered this month, the price of Bitcoin is expected to fall by 15-20%, with the drop ranging from 40,000 (approximately 5.79 million yen) to 1.5 million yen.
"We're going to see a surge to the $50,000 mark," he said. He noted that September has historically been a very volatile month for Bitcoin, and the expected Fed interest rate cuts will compound this.
"This logic can easily be invalidated if macroeconomic conditions change," he said. "Currently, traders are
The Fed's interest rate decision is scheduled for September 18, and Fed Chairman Jerome Powell said in August that "now is the time to cut interest rates."
Investors are optimistic about interest rate cuts after the SEC said in a statement that lower interest rates make relatively risky assets like Bitcoin more attractive, while traditional assets like bonds and time deposits are more attractive.
Traditional assets are less profitable. If Bitcoin were to fall 20% from its current price, that would be equivalent to about $46,000, the level it last traded at since February 8.
Markus Thielen, head of research at 10xResearch, a digital asset research and education institute.
Thielen said this is the price water mark that Bitcoin must reach before it can enter the next bull run.
"To ideally time the next bull run, I would like to see the price of Bitcoin drop to the low $40,000 range," he said in early August.