Bitcoin started the week by selling as high as $63,000, and US Federal Reserve Chairman Jerome Powell’s comments that further interest rate cuts were part of the Fed’s plans had no impact on the intraday trend. Despite the correction, Bitcoin price remains on track to end the third quarter with positive gains.
On September 30, Bitcoin (BTC) fell about 4% from a high of $65,634 to an intraday low of $63,049, according to data from Cointelegraph Markets Pro and TradingView. At the time of publishing, Bitcoin price was trading at $63,344, down 3.6% in the last 24 hours.
BTC/USD hourly chart. Source: TradingView
Speaking at the National Association for Business Economics in Nashville, Powell said the upcoming rate cut would not be as aggressive as the recent 50 basis point cut.
The Fed Chairman explained that if the economy performs as expected, the market should expect two more interest rate cuts in 2024, but by 0.25%.
“This is not a committee that feels like it’s rushing to cut rates quickly.”
“Going forward, if the economy broadly develops as expected, policy will likely move toward a more neutral stance over time. But we are not on a predetermined course. The risk is two-sided and we will continue to make decisions through our meetings,” Powell added.
Chairman Powell’s remarks come less than two weeks after the Federal Open Market Committee (FOMC) cut interest rates by 50 basis points for the first time since March 2020.
Futures market forecasts suggest the Fed is more likely to move cautiously and approve a quarter-point cut at its next meeting in November. However, traders see December’s moves as more aggressive. There is about a 48% chance of a 0.5% rate cut at the FOMC meeting on December 18, according to data from the CME Group FedWatch tool.
Potential target interest rates for the November 7 FOMC meeting. Source: CME Group
Prior to the remarks, the market expected the FOMC to cut interest rates by another 0.5% at its next meeting.
relevant: Bitcoin prices fell as investors were confused by the global recession and concerns about an AI bubble.
Bitcoin traders are still hoping for a strong fourth quarter.
Powell’s comments come after major cryptocurrencies posted three straight weeks of gains. Bitcoin got off to a rough start to what was historically BTC’s weakest month, falling 11% between September 1 and September 6. However, prices rebounded after the Federal Reserve cut interest rates by 50 basis points following the September 1st FOMC meeting. 18.
Bitcoin price is expected to rise 0.6% in the third quarter and 7% in September, according to data from CoinGlass.
Bitcoin quarterly and monthly returns. Source: Coinglass
“Election years have been 100% green October, November and December,” WeRate co-founder Quinten François said in a September 30 post.
“100% of the years when September was green, October, November and December were green. “The fourth quarter starts tomorrow.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.