Bitrabo Editorial
With the Federal Reserve’s upcoming rate cut just days away, a cryptocurrency expert has provided insights into how this might influence Bitcoin’s performance, particularly regarding the significant date of September 18, which has become a focal point of discussion among investors.
Anticipated Short-Term Instability for Bitcoin
In a cautionary message shared on the X platform (formerly known as Twitter), the respected market analyst Doctor Profit haswarned Bitcoin investors about potential short-term turmoil following the Fed’s rate reduction.
Doctor Profit suggests that as the economic landscape shifts, investors might engage in rapid sell-offs or experience market corrections. Despite such fluctuations in the short run, he remains optimistic about Bitcoin’s long-term prospects.
Specifically, the analyst predicts a short-term panic if the Fed lowers interest rates by 0.50%, particularly in light of the geopolitical tension surrounding a potential Israeli invasion of Southern Lebanon. He believes that during peak panic, investors will have the opportunity to acquire more Bitcoin, but recommends maintaining existing positions for the time being.
Although Doctor Profit foresees significant short-term volatility, he admits it’s challenging to pinpoint Bitcoin’s next price level. He plans to keep his spot and long positions within a $50,000 to $53,000 range, which he took during last week’s market downturn. He cautions investors to be wary of false price swings, as market manipulations could lead to drastic price changes.
Additionally, he points out that the Fed may use this environment of fear as a smokescreen for geopolitical tensions. Therefore, he emphasizes maintaining optimal risk management through the month, keeping positions secure with stop-loss orders at the entry point.
For now, he urges investors to focus on navigating the forthcoming short-term panic rather than attempting to predict Bitcoin’s trajectory, highlighting the importance of having a robust strategy during this volatile period.
Market Movements Prediction
As the critical date approaches, Doctor Profit emphasizes that there’s a 50-50 likelihood that the Federal Reserve will implement a rate cut of either 0.50% or 0.25% on September 18. However, he believes that a 0.25% decrease would be inconsequential given the current market climate.
He warns that the market may face another significant decline akin to last month’s “Blood Monday” if the rate isn’t reduced by 0.50%—though Federal Reserve Chairman Jerome Powell is likely keen to prevent such a scenario.
Doctor Profit speculates that Powell will highlight the unexpectedly rapid drop in inflation rates and express contentment with the Fed’s aggressive rate-raising approach. He may also stress the positive economic developments observed without signaling fears of a recession, hinting that further rate cuts could be on the horizon.