Bitcoin has been under intensified selling pressure since the start of the week, with the largest cryptocurrency experiencing a nearly 4% drop in value over the past seven days. This decline brought Bitcoin to a one-month low of $55,690 earlier on Wednesday, raising concerns among investors about its near-term trajectory. Could Fed Rate Cuts Drive Bitcoin Beyond $100,000? A market expert known as “Chicken Genius” recently shared his insights on social media, suggesting that the $55,000 mark could represent a significant bottom for Bitcoin. He points to a notable surge in US liquidity, which has climbed to $6.117 trillion since the beginning of the month. Related Reading: Stunning Fall From Grace: Cardano Suffers 90% Plunge In Market Share Since ’21 This influx of liquidity could signal a potential reversal in the crypto market, providing the necessary support to bolster Bitcoin’s price and generate the buying pressure that has been notably absent in recent weeks following a failed attempt to consolidate above the key $60,000 threshold. In his analysis, Chicken Genius also highlighted expectations that US interest rates may decrease from 5 to 3 over the next six months. The expert argues that such a shift from the US Federal Reserve (Fed) could propel Bitcoin beyond the $100,000 mark, significantly exceeding its current all-time high of $73,700. However, not all analysts share this bullish outlook. Market Uncertainty Another analyst, known as Crypto Data, cautioned that historically, Bitcoin has dropped an average of 15% following five instances where the Federal Reserve cut rates. If this pattern holds, Bitcoin could fall to around $48,000 from its current levels. This perspective reflects a more cautious stance amid the current economic climate, particularly given the proximity of the upcoming US elections in November, which could have significant implications for the BTC price and the entire market. Related Reading: Critical Bitcoin Indicator: Analyst Foresees Major 75% Correction Ahead Many believe that a potential victory for former President Donald Trump could lead to a looser regulatory climate and a surge in crypto prices, led by BTC, as the coin has been at the forefront of Trump’s plans in the US, such as paying off the country’s $35 trillion debt with BTC and creating a strategic reserve based on the cryptocurrency. To further complicate the situation, Crypto Data noted that historically, September has been bullish two-thirds of the time during Halving cycle years. This factor adds another layer of uncertainty, as it could also mean a notable boost for the Bitcoin price amid the broader bearish sentiment in the market. After falling towards the $55,690 mark, the leading cryptocurrency regained the $57,400 mark at the time of writing. Featured image from DALL-E, chart from TradingView.com
