Bitfinex Predicts Rate Cuts May Trigger September Crypto Market Decline

According to recent study, September may be a difficult month for the cryptocurrency market, especially for Bitcoin (BTC), according to Bitfinex, a well-known exchange. The research alerts readers to the possibility of sharp price drops as a result of expected responses to impending rate reduction.

According to Bitfinex’s analysis, Bitcoin’s present value of about $56,654 might decline sharply over the next several weeks to as low as $40,000. This would represent a significant 30% drop in value. According to the exchange, Bitcoin may drop by 15% to 20% if rate cuts are made this month, with a possible bottom between $40,000 and $50,000.

The reasoning behind this projection is rooted in historical patterns observed in Bitcoin’s market cycles. Bitfinex notes, “The cycle peak in terms of percentage return reduces by around 60-70% each cycle, and the average bull market correction has reduced as well.” However, they also caution that this prediction could be invalidated if macroeconomic conditions shift unexpectedly, adding, “These are uncertain times for traders.”

September: A Volatile Month for Bitcoin

According to Bitfinex’s analysis, September has traditionally been a month when Bitcoin is most volatile and frequently has bad performance. The exchange explains this volatility by pointing out that there is an increasing link between Bitcoin and traditional financial markets, especially with riskier assets like the S&P 500. As a result, changes in central bank monetary policies and overall macroeconomic conditions have a greater impact on the price of Bitcoin.

Additionally, the research points to the possibility of a “sell-the-news” reaction in the market after a rate drop, which might present traders with both chances and hazards. The upcoming weeks may be difficult for anyone navigating the cryptocurrency market due to this possible volatility.