Fed's Interest Rate Decision: How It Could Affect Bitcoin’s Price

[HarutCP]

Today, the U.S. Federal Reserve (Fed) is having a big meeting, and everyone’s paying attention, especially those in the crypto world. The main topic is the decision about the interest rate. Since these rates are such a key part of economic policy, any change can really shake things up in the financial markets, including for cryptocurrencies like Bitcoin.

What’s the Fed’s Interest Rate?

The Fed’s interest rate is basically how much it costs for banks to borrow money. This affects a lot of things, like how much people spend, how the economy grows, and even the price of assets in the market. When the Fed raises the rate, it makes loans more expensive, which can slow down spending and overall growth. On the other hand, lowering the rate can encourage people to borrow and spend more, possibly boosting market activity.

Why Does This Matter for Bitcoin?

Bitcoin and other cryptos are becoming more popular as alternatives when traditional financial systems are unstable. So, when the Fed raises interest rates, it can make things like stocks and bonds look more appealing, and people may shy away from riskier assets like Bitcoin. But if they lower the rate, it might push investors to look for higher returns, and Bitcoin could be a tempting option.

What Impact Could This Have on Bitcoin’s Price?

Right now, many analysts think that whatever the Fed decides, it’s going to have a big effect on Bitcoin. If the rate goes down or stays the same, we could see Bitcoin’s price go up, as investors look for better returns. But if the rate goes up, Bitcoin could drop in price in the short term since the market’s used to low rates, and higher rates might scare people off from crypto investments.

What’s Likely to Happen?

It’s hard to say for sure, but it’s definitely worth keeping an eye on how the market reacts to the news. Some experts believe that even if the Fed raises rates, Bitcoin will still be seen as a safe bet against inflation and global uncertainty, meaning it might stay in investors’ portfolios.

In the end, today’s Fed decision could be a major event, not just for traditional finance, but also for the crypto market. Bitcoin, along with other cryptos, could see big moves depending on how the news shakes out.

What do you think? Will the Fed’s decision affect Bitcoin’s price? Drop your thoughts in the discussion below!

[Crwth]

As long as there are rate cuts or holds, Bitcoin's price can rise because people are looking for better returns, and BTC can give them that. This would be better seen in the long term, and those rates could really impact BTC. It's hard to say what would happen, but it would be okay if they were hedging against inflation.

[ZAINmalik75]

What do you think? Will the Fed’s decision affect Bitcoin’s price? Drop your thoughts in the discussion below!

As expected, they reduced the rate and it is bullish for BTC but BTC is still going down and testing its supports these are some healthy correction for the BTC so after testing these supports BTC will bounce back to $108k or more.

Traditional investors finds BTC more profitable now and these rates are reducing in every meeting and making the bull season more bull but we must remember in the bear market the rates will be increased too.

[Azharul]

What do you think? Will the Fed’s decision affect Bitcoin’s price? Drop your thoughts in the discussion below!

As expected, they reduced the rate and it is bullish for BTC but BTC is still going down and testing its supports these are some healthy correction for the BTC so after testing these supports BTC will bounce back to $108k or more.

Traditional investors finds BTC more profitable now and these rates are reducing in every meeting and making the bull season more bull but we must remember in the bear market the rates will be increased too.

Yes, I am also believe that feds interest rate will affect in bitcoin price. Because I think that if interest rate will increase, then bitcoin price is increasing gradually in crypto currency market. I also believe that bitcoin price is increase in $110k after in one month. I also believe that within a short time bitcoin price passing in $120k. So I think that in this time invest or hold in bitcoin is very prefer time in crypto currency market. Because I think that in this reason we can get best return from bitcoins. So I think that hold or invest will be best decision for us.

[TomPluz]

What do you think? Will the Fed’s decision affect Bitcoin’s price? Drop your thoughts in the discussion below!

This is actually more of a psychological thing rather than a very real one with a lot of consequences. Now, the Fed has been using interest rate as a way to control the inflation rate and since the inflation has already started to wane there is a strong possibility that there can be a small cut on the interest rate which means that Bitcoin will be a big beneficiary of this coming decision. Of course, this is just my speculation and since I am not privy to data to be used in fed's decision making I could not surely be certain.

[0t3p0t]

As long as there are rate cuts or holds, Bitcoin's price can rise because people are looking for better returns, and BTC can give them that. This would be better seen in the long term, and those rates could really impact BTC. It's hard to say what would happen, but it would be okay if they were hedging against inflation.

Well yeah if the inflation will continue to rise the only way we can do is to hold Bitcoin and whether we like it or not it's gonna happen. The world is full of manipulation and so as the inflation where most countries are suffering from it right now. If they can find ways to lower rate of inflation then that's the best thing they can do to help us.

[rdluffy]

I thought that after yesterday's cut, cryptos would react well again and BTC would even renew ATH once more
Funny how the market doesn't react the way we expect it to

But not only cryptos, the stock market reacted bad too:

S&P 500: -2,95%,
Dow Jones: -2,58%
Nasdaq: -3,56%

 

[Faisal2202]

This is actually more of a psychological thing rather than a very real one with a lot of consequences. Now, the Fed has been using interest rate as a way to control the inflation rate and since the inflation has already started to wane there is a strong possibility that there can be a small cut on the interest rate which means that Bitcoin will be a big beneficiary of this coming decision. Of course, this is just my speculation and since I am not privy to data to be used in fed's decision making I could not surely be certain.

You are right and OP has also said he same reason that why this cut on interest rates is good for BTC because the profit from other investments is now lesser for the investors and they need a better option so BTC there is.

Although this time the meetings were 2, I think the first meeting was in favor of crypto that's why it pumped for a while and I was also very bullish that the interest rates is again cut but I did not heard what Powel said after (in the second meeting) that made the market dump and it is still dmping although it was predicted already.

[Zed0X]

Yeah, price reacted differently to the rate cut. Some people with heavy bags probably decided it was time to unload some of that. Anyway, it's not something that will keep the price down for long term but, for sure, many funds were burned.

[yhiaali3]

Yes, it is true that the Federal Reserve has decided to cut interest rates and has interacted with the market so far, but I think that the correction will be temporary between December 17-20, after which there will be a general market rise.

According to what I have read from some good analysts, there will be a strong rise from today until approximately the first week of January, where Bitcoin may touch $120K, and after that there will be a correction for Bitcoin and the rest of the coins, the percentage may reach -30%. Of course, these are just analyses that I hope are correct.

[hugeblack]

The decision was in line with expectations, but the real difference is that the rate of reduction next year will be slower than expected, but personally I do not see any impact from that. Next year, Trump will come and then he may make changes that force the Fed to change its current expectations.

[ZAINmalik75]

Yes, I am also believe that feds interest rate will affect in bitcoin price. Because I think that if interest rate will increase, then bitcoin price is increasing gradually in crypto currency market. I also believe that bitcoin price is increase in $110k after in one month. I also believe that within a short time bitcoin price passing in $120k. So I think that in this time invest or hold in bitcoin is very prefer time in crypto currency market. Because I think that in this reason we can get best return from bitcoins. So I think that hold or invest will be best decision for us.

In this month it can be difficult for BTC to touch $110k price target because 10 days have left and BTC is dumping today there was a major dump that BTC almost hit $90k and $88k the more it would dump the better the opportunities for investors to buy BTC and alts. In my opinion buying alts will be the best deal if we calculate the ROI here.

Investing in BTC now is a good plan until it reaches $120k because that's a target that BTC can touch Certainly all investors want to gain good returns from BTC.

[hugeblack]

In this month it can be difficult for BTC to touch $110k price target because 10 days have left and BTC is dumping today there was a major dump that BTC almost hit $90k and $88k the more it would dump the better the opportunities for investors to buy BTC and alts. In my opinion buying alts will be the best deal if we calculate the ROI here.

The price is now around $98k and therefore the chance of touching $110k in December is still realistic especially after the Christmas holidays. Unless there is a real correction below $90k, the uptrend is still in control.

[rdluffy]

In this month it can be difficult for BTC to touch $110k price target because 10 days have left and BTC is dumping today there was a major dump that BTC almost hit $90k and $88k the more it would dump the better the opportunities for investors to buy BTC and alts. In my opinion buying alts will be the best deal if we calculate the ROI here.

The price is now around $98k and therefore the chance of touching $110k in December is still realistic especially after the Christmas holidays. Unless there is a real correction below $90k, the uptrend is still in control.

I didn't expect this strong correction in this period, but a slowdown
I don't remember if the price stagnates at the end of the year, I'll even check some charts to get an idea of what happened
But in 2020 to 2021, for example, I remember a strong rise at the end of the year and at the beginning on 2021, especially for altcoins

I'm also curious to see if BTC's monthly chart will close in profit after November, it's not going to be very easy
BTC ended november with 96,5k

[ZAINmalik75]

The price is now around $98k and therefore the chance of touching $110k in December is still realistic especially after the Christmas holidays. Unless there is a real correction below $90k, the uptrend is still in control.

When I wrote my post the price was not recovering that's why I was bearish about it and the last 10 days of December too but price recovered and the resistances of $98k and $99k was broke by BTC now again the big support of $95k is important to keep an eye on.

If BTC will drop to $95k then I think alts can bleed now if BTC maintains this price it can certainly go above $100k and last ATH and then $110k should not be a diificult target for BTC.