Fed interest rate cuts increased Bitcoin investor confidence, with whales buying up to 1.6 billion BTC since the macro decision. With such a bullish outlook, there is a possibility that the flagship cryptocurrency could will soon reach $70,000.

Fed Rate Cuts Cause Bitcoin Whales to Go on a Buying Frenzy

The Fed’s interest rate cuts have sparked a wave of Bitcoin Whales. These investors bought more than $1.6 billion worth of Bitcoin after the September 18 macro decision. Data from the market intelligence platform To the Block shows that since September 19, these whales have purchased 25,510 BTC.

This accumulation trend is not surprising, as the 50 basis point interest rate cut has provided a bullish outlook for risk assets, including Bitcoin. The flagship cryptocurrency is expected to see a significant price raise as more liquidity flows into its ecosystem as investors are able to access more money following the Federal Reserve’s quantitative easing (QE).

Given the predictions of massive upward moves for Bitcoin, a surge to $70,000 is possible very soon. The flagship crypto has already overturned the $60,000 price level as support following the Fed rate cuts and is comfortably above that level. As expected, more liquidity is already flowing into the BTC ecosystem, as seen by the $1.6 billion in purchases by these whales.

Therefore, it should not take long enough for the cryptocurrency to reach $70,000. Bitcoin reaching this level is significant because it could pave the way for BTC to reach fresh all-time record (ATH)The $70,000 price level has been a forceful resistance since the cryptocurrency fell below it after rising to its current all-time high of $73,000 in early March.

However, Bitcoin can easily break through this resistance this time around, given that it has a larger uptrend thanks to the Fed’s interest rate cuts.

History may repeat itself

Apart from the Federal Reserve’s interest rate cuts, Bitcoin’s historical trend provides a bullish outlook for the flagship cryptocurrency and suggests that a rally to $70,000 should happen soon. Cryptocurrency Analyst Ali Martinez It was recently noted that Bitcoin enjoyed a price raise of 61% and 171% in 2016 and 2020 respectively. These years were both halving years.

The analyst further revealed that Bitcoin’s price action this year is mirroring 2016 and 2020. As such, history could repeat itself and the flagship cryptocurrency could enjoy gains similar to those in previous years.

In addition, 4th quarter of each year historically, this is the time when Bitcoin enjoys its greatest gains. Therefore, BTC should see significant price gains heading into the last quarter of this year. Meanwhile, the post-halving rally is also just around the corner, which could prompt this price raise to $70,000.

At the time of writing, Bitcoin is trading at around $63,900, up more than 1% in the past 24 hours, according to data data from CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com