Bitcoin Volatility Expected Ahead of US Interest Rate Decision

🤑 Bitcoin's price may face downward pressure ahead of the United States Federal Reserve's September 18 interest rate decision, having lost the key $60,000 support level. Analysts from Bitfinex suggest that the incoming decision could introduce more price volatility for the cryptocurrency, depending on whether the rate cut is 25 or 50 basis points. This expected volatility might be reflected in flows across ETFs and perpetual markets.

📌 The Fed is widely expected to deliver its first interest rate cut since the beginning of the COVID-19 pandemic. While markets are leaning towards a 50-basis-point cut, Bitfinex analysts believe a 25-basis-point reduction is more likely due to stronger core inflation. Despite recent fluctuations, analysts view Bitcoin's dip to $52,756 on September 6 as a potential local bottom, with prices subsequently increasing by over 15%.