As the Federal Reserve’s (FED) interest rate cut approaches, discussions about the event’s impact on BitcoinThe largest crypto asset has seen a significant surge within the community. However, one crypto analyst who looks into the topic has predicted a price implication similar to past scenarios, especially in 2019.
Bitcoin’s Pop-and-Drop Performance Coming Soon
Apsk32, a cryptocurrency expert and engineer, has given his thoughts on the implications of Bitcoin’s price performance following the Fed’s interest rate cut that is expected to take place on September 18. predicted that Bitcoin could see a price impact in 2024 similar to that seen in 2019 after the rate cut.
According to the cryptocurrency expert, when the Federal Reserve After the interest rate cut in August 2019, Bitcoin saw a rise of about 20% in a week. However, about 3 months after the event, the digital asset lost its momentum and fell by more than 33%, triggering pessimism in the sector.
Comparing the two eras, Apsk32 is convinced that if the Fed decides to move towards monetary easing this year, BTC price performance could mirror the same positive and negative trend of 2019 after the event.
While the analyst believes that BTC could see a similar rise and collapseHe is not sure that the cryptocurrency will fall by 33% from now. As a result, he placed his base price for Bitcoin between $45,000 and $55,000 before finally seeing a rise in 2025, which is considered a promising year for the crypto asset.
Apsk32 seems to be very bullish on Bitcoin and its long term potential as evidenced by his previous bold prediction where he envisions a price of $2.6 million per BTC in the future. His projection is based on the digital asset’s market capitalization, which is in alignment with a power law.
The expert pointed out that since 2011, a power law has governed the purchasing power of BTC market capitalization. Thus, if this trend continues, the value of the coin will reach $2.6 million in the next 10 years.
A wave of bullish predictions for BTC
This marked optimism from Apsk32 matches that of asset management firm VanEck, which has also predicted a similar price range for BTC in the long termThe $100 billion-plus asset manager in its latest report report BTC is expected to be valued at $2.9 million by 2050, translating to an overall market cap of $61 trillion.
Van EckThe prediction is based on the idea that Bitcoin could be used to settle about 10% of global international trade and 5% of global domestic trade by 2050, which could lead central banks to secure 2.5% of their assets in Bitcoin.
It is worth noting that the aforementioned price target is the company’s base-case scenario for BTC, while its worst- and best-case scenarios are set at $130,000 and $52.4 million, respectively.
Featured image from Unsplash, chart from Tradingview.com
