Bitcoin Price Stable Despite Fed Rate Cut, Experts Predict 2023 Rise

On September 17, the Federal Reserve's decision to lower interest rates and the cautious remarks made by the Federal Reserve Chair had a limited impact on the trajectory of Bitcoin. However, analysts generally agreed that Bitcoin's price is likely to continue rising for the remainder of the year. They attributed this potential increase to the Chair's emphasis on the weakening job market and broader concerns, which could lead to further rate cuts by the Federal Reserve, thereby boosting the prices of Bitcoin and other cryptocurrencies. Additionally, factors such as the growth in cryptocurrency reserves were cited as favorable indicators.

The Federal Reserve reduced the target range for the federal funds rate to 4.00% to 4.25%, marking a 25 basis point decrease. This was the first rate cut of the year, following five consecutive meetings where the policy rate remained unchanged. The decision came after months of pressure from the U.S. President. The Chair noted that while inflation risks are tilted to the upside, employment risks are tilted to the downside, presenting a challenging scenario. The Chair also highlighted that higher tariffs have started to drive up the prices of certain goods.

An industry expert commented that the Chair described the move as a "risk management measure," despite acknowledging the slowing job growth and high inflation. The expert added that the Federal Open Market Committee's statement and projections outlined a data-driven path for future rate cuts, suggesting that a more accommodative financial environment would support the cryptocurrency ecosystem.

Following the Federal Reserve's announcement, Bitcoin's trading price remained relatively stable at around 117,000 dollars, as investors had already factored in the rate cut. Subsequently, the price dipped slightly to 116,600 dollars. In contrast, the tech-heavy Nasdaq index and the S&P 500 index both experienced declines. Over the past week, both the cryptocurrency and stock markets had seen gains, with Bitcoin rising by 2%.

An expert from a global cryptocurrency asset management company noted that Bitcoin's reaction to the news was "muted," but other factors could drive its price higher in the coming weeks. These factors include corporate Bitcoin reserves and the continued demand for exchange-traded funds (ETFs). The expert suggested that these elements, combined with increased market confidence in further rate cuts, could push Bitcoin's price to new highs in the near future.

Over the past week, Bitcoin ETFs saw the largest inflows since July, with holdings reaching a new peak. An executive from a cryptocurrency-focused investment bank commented that Wall Street is entering an unprecedented period of currency devaluation, a situation not seen since 2021. The executive believes that Bitcoin offers a viable solution to this devaluation, although the transition may not be immediate. As interest rates continue to fall, investors are expected to allocate more funds to Bitcoin to protect their purchasing power.