FBS analysts project a looming downturn for Bitcoin as the market players await the upcoming Federal Reserve’s key rate cut in 2024. This tendency signals the rising probability of the BTCUSD’s closing bullish trend, as rate hikes frequently influence risk assets such as Bitcoin.
The Federal Reserve’s key rate, a pivotal factor determining the minimum interest rate for interbank lending, plays a substantial role in shaping the financial landscape. Market participants have observed a correlation between the Federal Reserve’s key rate peaks and the decline of risk assets, including Bitcoin.
As FBS analysts review Bitcoin’s behavior from 2017 to 2020, they point out a remarkable 370% surge in early 2019 to 13,000 USD or the 61.8 Fibonacci level, following public anticipation of the rate cuts. However, the trend reversed as the rates started declining, leading to bearish BTCUSD.