With the Federal Reserve (FED) quickly approaching interest rate cuts, there is growing talk about the impact of this event on Bitcointhe largest crypto asset has grown significantly in the community. However, a crypto analyst delving into the topic predicted similar price implications as in previous scenarios, especially in 2019.
Bitcoin’s upcoming performance boost
Apsk32, a cryptocurrency expert and engineer, has offered insights into the impact of bitcoin price movements following the Fed’s September 18 interest rate cut. Expert predicts that in 2024, Bitcoin could experience a similar price impact to that seen in 2019 following the interest rate cut.
According to a cryptocurrency expert, when Federal Reserve cut interest rates in August 2019, Bitcoin saw a rise of about 20% in one week. However, about 3 months after this event, the digital asset lost its momentum and fell by more than 33%, causing pessimism in the industry.
Comparing the two eras, Apsk32 believes that if the Fed decides to ease monetary policy this year, BTC price behavior may reflect the same positive and negative trend of 2019 after this event.
The analyst believes that BTC could experience a similar rise and collapsehe is not sure if the coin will fall 33% from this point. As a result, he has placed his Bitcoin base price between $45,000 and $55,000 before ultimately seeing a rally in 2025, which is considered a promising year for the crypto asset.
Apsk32 seems to be very bullish about Bitcoin and its long-term potential, as evidenced by his previous bold prediction where he predicts $2.6 million for BTC in the future. His prediction is based on the market capitalization of the digital asset, which follows a power law.
The expert pointed out that since 2011, the power law has governed the purchasing power of BTC’s market capitalization. So, if this pattern continues, the coin’s value will reach $2.6 million in the next 10 years.
A wave of bullish forecasts for BTC
This extreme optimism from Apsk32 aligns with that of asset manager VanEck, which also predicted a similar price range BTC in the long term. Managing over $100 billion in assets in its latest edition report By 2050, BTC is expected to reach $2.9 billion in value, which would translate into a total market capitalization of a staggering $61 trillion.
WanEckThis prediction is fueled by the belief that by 2050, Bitcoin could be used to settle about 10% of global international trade and 5% of global domestic trade, which could lead to central banks securing 2.5% of their assets in BTC.
It is worth noting that the aforementioned price target is the company’s base case scenario for BTC, while the worst-case and best-case scenarios are estimated at $130,000 and $52.4 million, respectively.
Featured image from Unsplash, chart from Tradingview.com
