Looks like there’s a 99% chance of a rate cut today. Mind blowing, right? Do we think Bitcoin will react quickly and shoot up to that $125k mark or what?
What to Expect for Bitcoin After Today's Rate Cut?
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just_nonceNewbie
Posts: 122 · Reputation: 15
#2Jun 30, 2020, 11:10 AM
Honestly, I think this rate cut is probably already baked in. With everyone expecting it, I doubt it’ll move the price much.
What do you mean 'already baked in'? Rate cuts are usually good news for Bitcoin. We're still so far from that all-time high, how can it be priced in?
just_nonceNewbie
Posts: 122 · Reputation: 15
#4Jul 3, 2020, 12:24 AM
People expect it to happen, so they adjust before the actual announcement. That’s how the market works, you know? It reflects what’s anticipated.
Fair point, but it’s not set in stone yet. Once they announce it, wouldn’t that boost confidence and help the price?
noty0urkeysSenior Member
Posts: 64 · Reputation: 834
#6Jul 3, 2020, 06:12 AM
Remember what happened after the last rate cut in September? Bitcoin didn't really pop like everyone hoped. I wouldn’t get my hopes too high this time either.
Not saying it’ll go straight to $125k, but I thought there might be a small uptick, ya know? We’ll see soon enough.
So Bitcoin just dropped from $115.5k to $111.5k in 24 hours. And you’re saying it’s already priced in? That’s hard to believe.
stake_2017Newbie
Posts: 182 · Reputation: 12
#9Jul 3, 2020, 06:18 PM
Pretty much everyone expects a 25 basis point cut. If it’s anything else, then we’ll see some moves. If it’s 50, that could trigger a rally; otherwise, it might tank.
So we got the expected 25bp cut, but Bitcoin’s now at $110k? Feels like manipulation to me. I’m just holding at this point.
fox_rock3tMember
Posts: 103 · Reputation: 172
#11Jul 4, 2020, 04:21 AM
Totally with you. This is how it usually goes when news drops. The market likely reacted early. A correction might just set us up for the next rally.
That saying ‘buy the news, sell the rumor’ rings true here. Everyone was hyped, and now the price dips? Sounds like we peaked too soon.
quantumminerMember
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#13Jul 5, 2020, 04:32 AM
For me, the key was the announcement about ending QT. That could really help Bitcoin. It’s coming up in December, but I don’t think that’s fully factored in yet.
You’re spot on. The market's reacting now to sell the news. This could lead to dull trading for the next couple of months.
Market reactions depend on various factors, not just rate cuts. Sure, we’ve dipped since Monday, but I still believe we’re due for some upward movement.
jake.minerNewbie
Posts: 67 · Reputation: 18
#16Jul 5, 2020, 05:40 PM
Uncertainty in Powell's statements definitely shook things up. He was not super optimistic about more cuts this December. That’s the real reason for the drop.
The conference overshadowed the rate cut itself. Now traders are thinking there’s less chance for another cut next month.
bridge_2016Senior Member
Posts: 77 · Reputation: 1182
#18Jul 7, 2020, 05:09 PM
Don’t take economic news for granted with Bitcoin. The other day, we saw a decent drop after the announcement because everyone was already banking on the cut.
Yeah, let’s just wait and see what happens. Everyone keeps saying rate cuts favor crypto, but we’ve had rough days even after cuts before.
If Bitcoin plays its cards right at the start of November, we might see it hit those highs again by mid-month.