{"id":3092259,"date":"2024-02-01T09:15:49","date_gmt":"2024-02-01T14:15:49","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/plato-data\/fbs-analysts-predict-bitcoin-downturn-amidst-anticipation-of-2024-federal-reserve-rate-cut-forexlive\/"},"modified":"2024-02-01T09:15:49","modified_gmt":"2024-02-01T14:15:49","slug":"fbs-analysts-predict-bitcoin-downturn-amidst-anticipation-of-2024-federal-reserve-rate-cut-forexlive","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/fbs-analysts-predict-bitcoin-downturn-amidst-anticipation-of-2024-federal-reserve-rate-cut-forexlive\/","title":{"rendered":"FBS Analysts Predict Bitcoin Downturn Amidst Anticipation of 2024 Federal Reserve Rate Cut | Forexlive"},"content":{"rendered":"
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FBS
\nanalysts project a looming downturn for Bitcoin as the market players await the
\nupcoming Federal Reserve\u2019s key rate cut in 2024. This tendency signals the
\nrising probability of the BTCUSD\u2019s closing bullish trend, as rate hikes
\nfrequently influence risk assets such as Bitcoin.<\/p>\n

The
\nFederal Reserve’s key rate, a pivotal factor determining the minimum interest
\nrate for interbank lending, plays a substantial role in shaping the financial
\nlandscape. Market participants have observed a correlation between the Federal
\nReserve’s key rate peaks and the decline of risk assets, including
\nBitcoin. <\/p>\n

As FBS<\/a> analysts review
\nBitcoin\u2019s behavior from 2017 to 2020, they point out a remarkable 370% surge in
\nearly 2019 to 13,000 USD or the 61.8 Fibonacci level, following public
\nanticipation of the rate cuts. However, the trend reversed as the rates started
\ndeclining, leading to bearish BTCUSD.<\/p>\n

The
\n2021-2024 scenario witnessed the Federal Reserve’s increasing interest rates to
\ncombat inflation. Despite initial expectations of such rate hikes dampening the
\ndemand for risk assets, Bitcoin’s value surprisingly increased. The market
\ndynamics shifted following the Fed’s announcement of a pause in rate hikes in
\nSeptember 2023, with markets pricing in an upcoming rate decline.<\/p>\n

Looking
\nat the 2024 financial market trends, FBS analysts point out the striking
\nsimilarities with Bitcoin\u2019s 2017-2020 pattern. They mainly highlight that
\nBTCUSD reached the 61.8 Fibonacci level at around 49,000 USD and subsequently
\nbounced off, coinciding with market expectations of the potential rate cut by
\nthe Federal Reserve.<\/p>\n

Considering
\nsubstantial parallels with the past, FBS analysts anticipate a decline in
\nBitcoin’s price towards the 36,000 USD target after the first Fed rate cut in
\n2024. Moreover, if BTCUSD loses this support, it may drop to 31,000 USD and
\neven 25,000 USD support levels.<\/p>\n

This
\nscenario underscores a crucial aspect often overlooked in market cycles. While
\nthere is anticipation that a key rate cut will positively impact prices of
\nrisky assets like Bitcoin, it is imperative to recognize the fundamental factor
\nthat such cuts typically occur in the face of economic stagnation and
\ndecelerating growth, prompting panic selling and the disposal of risky assets.<\/p>\n

Disclaimer:
\nThis material does not constitute a call to trade, trading advice or
\nrecommendation and is intended for informational purposes only.<\/p>\n