Bitcoin Price Plummets as Fed Caution Holds It Back

- Bitcoin plummets to $63,000 - Fed rate cut more cautious than expected [Unblock Media] Bitcoin's price fell sharply to $63,000 earlier this week, marking a red start. Even the Federal Reserve's (Fed) upcoming interest rate cut announcement failed to reverse this downward trend. Bitcoin dropped about 4% from its September 30 peak of $65,634, hitting an intraday low of $63,049. Despite Federal Reserve Chairman Jerome Powell announcing the rate cut, the selling trend of Bitcoin continued. Currently, Bitcoin's price stands at $63,344, marking a 3.6% decline over the past 24 hours. Powell explained in his speech at the National Association for Business Economics in Nashville that the upcoming rate cuts would not be as aggressive as the recent 50 basis points (0.5%) cut. Powell stated, "If the economy moves as expected, the market should anticipate two rate cuts in 2024, but these will each be 0.25%," adding that the policy will gradually move to a more neutral stance. The Fed's cautious rate policy limits the upward pressure on Bitcoin and other major cryptocurrencies. Additionally, Bitcoin's sharp decline in early September reflects market uncertainty and investors' risk-averse behavior. This indicates that investors are not yet entirely optimistic, which explains the complex effects of economic conditions and rate policies on the cryptocurrency market. Despite the historically strong downward trend in September, Bitcoin rebounded after the Fed's 50 basis points rate cut on September 18. Expectations for the fourth quarter, starting today, are also high. According to data from CoinGlass, Bitcoin's price rose 7% in September and increased by 0.6% during the third quarter (Q3). According to Quinten François, co-founder of WeRate, “100% of election periods have ended with an upward trend in October, November, and December, and in years when September is bullish (upward trend), 100% of October, November, and December have also been bullish.” Regarding the overall cryptocurrency market, major cryptocurrencies are showing a trend similar to Bitcoin. For example, Ethereum and Ripple also experienced price fluctuations similar to Bitcoin following Powell's remarks. Generally, a rate cut stimulates buying interest in risk assets like Bitcoin, but the Fed's cautious rate policy has limited this upward pressure. Bitcoin is expected to end Q3 with positive returns. Bitcoin traders are still optimistic about a positive Q4.