Many people believe that September is Bitcoin (BTC) 
$63,953 While we expected it to be one of the strongest months for the cryptocurrency, the largest cryptocurrency unexpectedly fell on the last day of the month. The price dropped by 3 percent to $62,989 on September 30.
Fed Interest Rate Statements Did Not Affect the Cryptocurrency Market
This decline took investors by surprise and affected the rest of the cryptocurrency market, causing liquidations worth $226.55 million. According to Coinglass data, this sudden drop in Bitcoin triggered a general fluctuation in the market.
Moreover, this decline occurred despite the fact that US Federal Reserve Chairman Jerome Powell, in his speech in front of the National Association for Business Economics held in Nashville, indicated that they could make additional interest rate cuts within the year. Powell said:
Going forward, if the economy improves overall as expected, policy will move towards a more neutral stance over time. But we are not on a predetermined route. The risks are two-sided and we will decide from meeting to meeting.
Powell stated that following the historic interest rate cut in September, two more 25 basis point cuts could be made this year. These cuts will come if the economy is moving in the right direction.
Analysts Expect a Rise in Bitcoin
Analyst RektCapital stated that 163 days have passed since the block reward halving, and historically, this period has come before a boom for Bitcoin. After the block reward halving in 2020, the price of Bitcoin entered a relatively stable period, which allowed investors to make purchases before the price of Bitcoin increased significantly.
RektCapital underlined that Bitcoin started to show a strong upward movement in mid-October, 163 days after the block reward halving in 2020. However, he emphasized that this model is speculative and there is no guarantee that historical models will be repeated.
Considering the current market situation and uncertainties, it is unclear whether there will be an upward trend similar to the 2020/21 period in the near future.
While Bitcoin’s current volatility and the Fed’s signals of possible additional rate cuts cause uncertainty in the cryptocurrency market, investors need to be careful. Although historical data points to a potential uptrend, it is difficult to make a definitive prediction about the future of the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
