Bitcoin Price Will Hit $70K Post Fed Meeting – Artur Hayes
Historically, September is catastrophic for the stock market, but this year’s economic landscape presents a different narrative. Reduced recession concerns, potential shifts in Fed policy, and positive sector trends are painting a picture of strategic investment opportunities. While Wall Street faces uncertainties, Bitcoin is displaying resilience. Federal Reserve Chair Jerome Powell hinted at another rate hike in the upcoming September Federal Open Market Committee (FOMC) meeting.
Bitcoin Holds Its Ground, But What’s Next?
Bitcoin, in the last 24 hours, witnessed significant volatility, swinging from highs of $25,941 to hovering just above the $25,000 mark. This surge in fluctuation aligns with an eagerly awaited legal decision sought by FTX executives in the Delaware bankruptcy court.
The following development is said to be in favor of Bitcoin. The United States is gearing up for pivotal economic data releases, including the Consumer Price Index (CPI) dropping on Wednesday, alongside the Producer Price Index (PPI) and unemployment claims on Thursday. Seems enough fuel to fire up the Bitcoin’s price.
FUD Heating on Rate Hike, Is FED cutting rates? Arthur Says BTC to Go $70K
Looking at the current lined-up events, BitMEX co-founder Arthur Hayes chimed in that a decision by the U.S. Federal Reserve to cut interest rates could rapidly shoot Bitcoin to $70,000. Hayes had previously anticipated this surge post-March, but the Fed raised rates three times since then. He highlights that the Fed’s move to cut rates could be a crucial step in stabilizing the U.S. banking system.
Interestingly, the Fed Chair said the central bank wouldn’t only base future interest rates on inflation. The FOMC would analyze many data points, including inflation patterns.
Hayes emphasized during a keynote at the Korea Blockchain Week conference that Bitcoin’s performance is closely tied to Fed policy and broader macroeconomic factors. Currently, signals indicate an imminent Bitcoin rally, as real rates (US 2-Year Treasury Yields minus nominal GDP growth) are turning positive.
Analysts and market players are still on edge because of the US Fed’s aggressive moves, but there are rumors of a possible rate cut in the new year. If the FOMC stops raising rates after the next meeting, rates might go down at the January 2024 meeting for the first time in more than two years. As of now, Bitcoin is trading at $26,123, marking a 2% increase in the last 24 hours. This surge is attributed to heightened trading activity, with trading volume spiking by 100% in the past day.