NEW YORK / LONDON (IT BOLTWISE) – The US Federal Reserve’s recent interest rate cut only boosted the Bitcoin price for a short time. Despite the expected adjustment, uncertainty about future monetary policy measures remains. Analysts and investors disagree about the long-term impact on the crypto market.
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The US Federal Reserve’s recent decision to cut the key interest rate by a quarter of a percentage point only temporarily boosted the Bitcoin price. Shortly after the announcement, the price of the cryptocurrency rose to almost $94,000 before falling slightly again. This reaction reflects both relief and disappointment: on the one hand, the expected rate cut was implemented, but on the other hand, the future of monetary policy measures remains unclear.
Bitcoin, often viewed as a digital store of value and speculative investment asset, is currently showing high sensitivity to the decisions of the Federal Reserve. This dependence on monetary policy could suggest that Bitcoin could break out of its current stagnation in the coming years. Experts like Fundstrat’s Tom Lee emphasize that Bitcoin is capable of behaving differently depending on the economic environment, similar to gold or other commodities.
Uncertainty over future interest rate policy has also led some financial institutions to adjust their Bitcoin price forecasts. The British bank Standard Chartered has lowered its year-end forecast for the Bitcoin price from $200,000 to $100,000. Despite this adjustment, the bank remains optimistic and continues to see long-term potential for the cryptocurrency.
Another factor affecting the crypto market is the increasing availability of crypto ETFs. Vanguard’s decision to open its trading platform to crypto ETFs is seen as a positive signal for the market. Analysts expect this development could attract new investors and increase demand for Bitcoin and other digital assets.
Companies like Strategy and Twenty One Capital continue to bet on Bitcoin and have recently increased their holdings. These strategic purchases suggest that major players in the market believe in Bitcoin’s long-term potential despite the recent volatility. The coming years could be crucial in determining whether Bitcoin reaches new highs and establishes itself as a stable part of the global financial system.
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