Bitcoin Likely to Experience Short-Term Panic Following Fed Rate Cut, Market Expert Cautions | Bitcoinist.com
With the Federal Reserve’s rate cut only a few days away, a crypto expert has shed light on the aftermath of Bitcoin‘s performance once the interest rate is decreased, particularly on September 18, which has been a major discussion within the general community.
Bitcoin’s Short-Term Panic Is A “High Probability”
In a cautionary post on the X (formerly Twitter) platform, well-known market expert and enthusiast, Doctor Profit, has issued a stark warning to Bitcoin’s investors that there may be a short-term panic following the Federal Reserve’s impending rate cut.
The analyst believes that as investors respond to changes in the economy, they may experience brief sell-offs or market corrections. Despite this volatility in the short term, the analyst is still positive about BTC’s long-term potential.
Specifically, Doctor Profit experts a short-term panic in the event that the Fed cut down the interest rate by 0.50%, especially with the possibility that Israel may invade Southern Lebanon. According to the expert, when panic peaks, this chaos will provide investors the chance to buy more Bitcoin, but for now, it’s holding the longs and spots.
While Doctor Profit anticipates wild short-term volatility, he stated that it is difficult to determine the next price point for BTC. However, he will be holding his positions, spot and longs, between the $50,000 and $53,000 level, which he entered during the previous Monday’s crash. He further warned investors to watch out for scam wicks, noting that the crypto asset might experience 100% price manipulations during the period.
Doctor Profit also noted that the Fed will disguise this fear as a response to geopolitical threats and exploit it as cover. As a result, the expert has placed his level of risk management at its peak till the end of the month, which keeps his spot holdings and longs safe with his stop-losses set at entry.
Thus far, he advises investors to worry more about surviving the incoming short-term panic rather than predicting Bitcoin’s next move, stressing the need for a solid plan in a period like this.
Possible Impact On Market Movement
As the event draws near, Doctor Profit has underlined a 50-50 chance that the interest rate will be cut down by 0.50% or by 0.25% on Wednesday, September 18. However, he believes that a 0.25% rate cut will be insignificant given the current condition of the market and economy.
Doctor Profit predicts that the market could experience another “Blood Monday” decline similar to the one witnessed last month if the Fed does not cut the rate by 0.50%, but Jerome Powell, the chairman of the Federal Reserve of the United States, wants to “avoid that.”
According to the expert, Powell will probably emphasize how inflation has dropped more quickly than expected and his satisfaction with the Fed’s aggressive rate-hike plan. Additionally, he will stress how much better things are looking economically without concern for a recession, and more cuts might be imminent.
BTC trading at $58,687 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Unsplash, chart from Tradingview.com
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