Bitcoin is trading at around $58,000, as the markets wait for Federal Reserve to announce its rate. BTC, like the rest of the market, has seen some wild fluctuations in recent weeks. Mining profits are falling, despite the rise in network computing.
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The Future of Bitcoin: Fed rate decision, BTC mining, and price trends
Fed Rate Cut Is Coming Soon
Federal Reserve is likely to cut rates tomorrow, September 18. CME Group data shows a 62% probability of a 0.5% rate cut.
Jonathan de Wet, from Zerocap, believes that a larger cut is needed. He added: “Given the Fed has waited this long for the initial cut, Zerocap is in the 50 bps camp, as opposed to backing the more conservative call of 25bps.”
Prices of Bitcoins Diverge
Bitcoin experts are divided on the price of Bitcoin in short term after Fed decision. De Wet believes that the price range could be between $53,000 and $65,000.
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“He noted” “We’re seeing a BTC downside target of 53,000 after the recent range lows, with an upside target of 65,000 after breaking higher from the descending wedge.”
Mines face headwinds
In early September, Bitcoin miners were struggling. As network power increased, their profits decreased. JPMorgan reported a hash rate increase of 4% this month. This is back to the levels before the halving.
Some businesses are changing their direction. Cathedra Bitcoin The focus now is to buy BTC direct. The aim is to have more Bitcoins in each share like MicroStrategy.
Institutional interests persist
Even though there are some short-term uncertainties, the big players believe that Bitcoin will be around for a long time. MicroStrategy intends to release $700,000,000 in convertible notes. This money will likely be used to purchase more BTC.
De Wet added “Tough to call on direction until we get closer to the election, but risk on conditions should lead to short-term positive sentiment.”
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Bitcoin will be impacted by the next few weeks. The markets will respond to the Fed decision. Investors will be watching to see if BTC moves out of the recent price range.
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Source: watcher.guru
