Impact of the US Fed's interest rate cut, will it trigger a Bitcoin rally?

Bittime - The financial world has again been shocked by the possibility of lowering interest rates by the United States Central Bank (The Fed) next September. This move not only sparked debate among economic experts, but also opened up new opportunities for the crypto market, especially Bitcoin.

Will the Fed's rate cut lead to a Bitcoin rally? Continue following the analysis in this article.

Peter Schiff's Response to Lower Interest Rates

Peter Schiff, a veteran trader and leading economic observer, recently made a controversial statement. Via his Twitter account on August 27, Schiff called the Fed's planned interest rate cut in September a "mistake". 

He attributed this view to various macroeconomic factors, including the significant weakening of the US dollar against other major world currencies.

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Schiff is not without reason in his criticism. The US dollar just hit its lowest point in 13 years against the Swiss franc, a worrying indicator for many market watchers. 

This weakness was also seen against the British pound (GBP) and euro (EUR), fueling broader concerns about the stability of the US economy.

However, on the other hand, many financial market analysts actually view this plan to reduce interest rates as a necessary step. They point to a downward trend in inflation characterized by falling annual consumer prices. 

Jerome Powell, Chairman of the Fed, in his recent speech, hinted at the possibility of lowering interest rates as part of the strategy to achieve the 2% inflation target. However, Powell emphasized that the final decision would depend on the latest economic data and the balance of existing risks.

The Impact of Lower Interest Rates on Bitcoin

So, how does all this impact Bitcoin, the world's largest crypto asset? Crypto market observers see falling interest rates as a breath of fresh air for risk assets, including cryptocurrencies. 

They argue that this move will encourage greater fund flows into the crypto market, potentially triggering a significant price rally.

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Furthermore, concerns about traditional fiat currencies due to macroeconomic turmoil have driven Bitcoin's popularity as an alternative store of value. In various countries, citizens are starting to turn to Bitcoin as a hedge against inflation amidst negative sentiment towards centralized financial systems.

The latest data shows this positive trend, with the amount of Bitcoin held by long-term investors increasing by 262,000 BTC in the last 30 days. Currently, long-term investors control 75% of the total existing Bitcoin supply.

Bitcoin Price Still Remains Volatile

However, the crypto market remains volatile. At the time this article was written, the price of Bitcoin was at IDR 926.2 million (equivalent to $60,049), experiencing a decline of 4.6% in the last 24 hours. 

This kind of price fluctuation is not uncommon in the crypto world, and investors are reminded to always be careful and conduct in-depth research before investing.

While the debate over US monetary policy continues, one thing is certain: the world of finance is at an important crossroads. Be it the US dollar, Bitcoin or other currencies, all will be affected by the Fed's decision in September. 

For the general public, this situation is a reminder of the importance of investment diversification and vigilance regarding changes in global economic trends.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of Indonesia's best crypto applications, officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.