BTC Recovers Strongly After Fed Cuts Rates

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max.gweiMember
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#1Jan 6, 2018, 04:44 PM
This week has been great for the crypto world, with BTC rising from a low of $114k on Monday to now trading over $117k. The surge came thanks to some macroeconomic shifts, especially the Fed's decision to cut rates on Wednesday. That cut helped BTC hit the $117k mark, and now the bulls are aiming for a new high around $120k soon. Analysts believe this move by the Fed will bring more liquidity into the crypto space, which could really help push prices up even more.
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humblefarmSenior Member
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#2Jan 6, 2018, 06:49 PM
Based on some reports, since October 2020, has always been a good month for Bitcoin (apart from 2022). It is believed that a rate cut will increase the amount of investors since more of them will put money in risky assets. The price is currently 116,343.99 and my prediction is that it could get to $125k and above before the end of this month
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chrischainFull Member
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#3Jan 6, 2018, 11:57 PM
It may, or it may not go that way - we need to accumulate BTC regardless, and we will be good in the long run.
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satoshi23Senior Member
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#4Jan 7, 2018, 05:45 AM
You're right, while in case of next time, you can always explain more better and if possible showing the effects on the chart as well as more details on this occurrence, I also noticed that this same rise in price have also positively affected some key altcoins rising the more, while bitcoin has also been showing more significant performance to push more beyond $117,000 and before the month end, there should be more bullish pattern from now on, but as I've seen it, the effect is not that much felt on bitcoin as we had it on some altcoins.
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coin_sigmaLegendary
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#5Jan 7, 2018, 11:39 AM
There's a big liquidity under $118k. I believe the news just helped to wipe out this liquidity under $117k since that was the old price and breakout before the downtrend began, but after a few days of BTC struggling to clear out that liquidity sitting at $117k, it started to drop again. However, this might be just a retracement, and there is not so much volume incoming during weekends so this friday should be bearish because institution and big whales are closing their position and wait again for open market next weekdays. So we might see the price pump again on upcoming monday to try to break $117k if it fails it might be the last pump and signal for upcoming bearish to test $114k again.
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planktonSenior Member
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#6Jan 7, 2018, 01:36 PM
Seems that this is what is happening right now, everything is wipe out, and this could be in billions again. Price goes down to $115k and so this could be the start of a downtrend when we thought that September will be a good month for us, it might turn out bearish again. So let's wait, as you have said, usually in weekend, there are no movement as traders are resting. Hopefully you are right mate, we wanted to see another good pump at $117k and then slowly in the last stretch of this year to pump hard to what we are speculating at around $150k or higher. But there is still a looming bearish test to $114k and if that happens this is not good for us.
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bridge100Senior Member
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#7Jan 9, 2018, 05:59 PM
I would say it's not really that "strong", I mean we knew it would happen and then it happened, so the price was ready. We peaked above 117, nearly 118k in some places and that's fine, that's not really that complicated. We shouldn't really be worried about it, and should be considering this as something that won't be that difficult to handle. So we are not going to get crazy results now, and maybe we will in the future, we need to wait some more. This alone isn't a good enough reason to start a bull run, so that is not going to be important. Fed rate cut was not something that would be big deal right now, would have been last time maybe. This is why it would make more sense if we could gather this and do a better job.
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alex.shardLegendary
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#8Jan 9, 2018, 06:08 PM
Bitcoin is now at $15150, but it fell to $15035 not quiet long. I do not believe in such news like this becusse it can only have short time effect. If bitcoin increased above $120000 again and get to all time high, I am very sure it is not because of the interest rate cut but it will be because of another thing.
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d4rk5tackSenior Member
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#9Jan 9, 2018, 11:49 PM
First of all historical I don’t think any body actually sees September as a bullish month for bitcoin, it has most likely been a bearish month for bitcoin, what most people were even expecting was at best a month of consolidation simply because of the poor performance of the bitcoin price in the month of August. This recent FED rate cuts was just a bullish fundamentals news but if we clearly look into the market there is still yet to be any good amount of volume coming to signify a strong market demand and it is was with this that I wasn’t actually expecting the price to hold at that $117k. Two weeks left of September I still think this FED rate might make this years September actually be a little bit different from the previous years own, I think the volume will creep in gradually because the rate cut wasn’t that heavy at once, was it had been a instant 50bps cut it would have had the much higher effect in the market, but right now most liquidity will be switch from other assets to bitcoin and it is a reason why the market will claim gradually. We can clearly see how the stocks market is looking since this announcement, it will definitely flow into bitcoin too
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alt_2021Full Member
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#10Jan 10, 2018, 06:50 AM
In theory, if interest rates fall and the economy becomes more stable, investors will tend to invest in riskier assets. But so far, the Fed has only cut once in 2025, interest rates are still quite high (3.75%-4%) and they say the quantitative tightening process is not over yet. That means the economic situation is not really stable yet, money has not been printed and there is no large cash flow into the market. So we should not be too hasty to rejoice and set expectations too high. We need more positive signals before expecting the market to boom such as they will continue to lower interest rates, CPI will decrease as expected. Only then does the money really flow in and the market explode. So I believe it won't be until mid-October that we really see more pronounced growth.
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paulyieldSenior Member
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#11Jan 10, 2018, 09:05 AM
There's a chance that interest rate will further being cut because trump is pushing for more and there are prediction that there'd be two more upcoming cut. Sounds very bullish scenario for bitcoin right now that's why market is going up again with a good sentiment, what it needs is just a good news and people are turning bullish. I expected that we gonna see another big rally for bitcoin in the future, even for stocks as well. Just my gut feeling though .
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chad2014Full Member
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#12Jan 10, 2018, 09:14 AM
The rate cut was already priced in. Bitcoin is pretty much at break-even from the price it was when the rate cut was announced on Wednesday. Same with Ethereum. Only BNB is one of the only tokens which reached a new ATH by breaking $1000 after the news. Stock market is another story, the indicies keep hitting new highs. Particularly stocks like INTC which are fueling the AI boom. Honestly this is starting to feel like a bubble that can burst any minute and mimics the dot com crash of 2000 when people were pouring in crazy amount of money for anything tech related and now its happening with the AI sector.
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ledger_protoFull Member
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#13Jan 10, 2018, 10:47 AM
The Fed has cut interest rates because inflation is falling, especially due to the weak labor market, and if this continues, it will lead to a recession. They cut rates to balance economic risks, they don't cut rates just because of Trump’s chatter on social media. LOL But yes, the rate cut is a positive signal for bitcoin as well as the entire financial market. Especially with speculative and high-risk assets like stocks and cryptocurrencies. Therefore, we can expect a big rally for the entire market.
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wildomegaFull Member
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#14Jan 10, 2018, 02:01 PM
Probably a sell the news event. It was really cool to see BNB reaching 4 figures and probably the reason why I'm bullish now to alts coming 4th quarter this year. The rotation to mid and low caps is probably happening now and would just be around the corner I guess before we see some parabolic run with the help of the rate cuts.
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wildvaultFull Member
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#15Jan 10, 2018, 02:28 PM
These news only have a short-term impact, we cannot expect more, because interest rates need time to really make positive impacts on the market. We shouldn't be too hasty and expect it to have an immediate impact on the market. BNB and its ecosystem are defying the bitcoin trend and today, BNB continues to increase in price and at one point almost touched the $1k1. We can't be sure that altcoin season is coming, but there are more and more positive signals for altcoins as many top coins are growing quite well, and projects with 10x or 20x growth have already started appearing on the market.
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whale365Senior Member
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#16Jan 10, 2018, 06:24 PM
It was just short live, or the news was already price-in. Maybe it was just FOMO as well, but it seems that the market is very smart to react to this kind of news unlike before wherein there could be a lot of newbies buying the news. So now everything is quiet and settled down. But it goes that we are above $108k-$110k and hopefully there will be strong support at $115k at least. Otherwise in the coming week it might be broken again and we are back from where we started because the Fed Rate Cut news.
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ledger_protoFull Member
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#17Jan 10, 2018, 11:53 PM
If bitcoin price continues to fall and goes below $108k, why do you think it's because the Fed is lowering interest rates? It sounds like you're trying to blame them  . Basically, interest rate cuts or quantitative easing are positive news for speculative and risky markets like stocks and crypto. But it takes time for changes in interest rates to fully impact the economy and markets. Short term volatility is essentially manipulation. Whales, market makers are using news to manipulate the market for their own gain. As evidenced by the fact that when bitcoin price dropped to $112k and dragged the entire market into a sea of ​​blood, more than $1.66 billion was liquidated. This is blatant manipulation, so if there is blame to be placed, it is the fault of the manipulators.
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alexaltFull Member
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#18Jan 11, 2018, 12:21 AM
There is not strong support at $115k because the price have dipped to $112k today. I woke up this morning and saw that bitcoin price is at $112k which I never expected. I thought that since we are starting a new week, bitcoin price will pump but it seems investors are still taking profit rather than buying. I am no longer hoping to see bitcoin price reach $120k this month of September because September is not a good month for bitcoin from onset. I will patiently wait for Uptober since that is a pump month for bitcoin. Maybe, that's when we will see the significant effect of the rate cut on bitcoin price.
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coin_sigmaLegendary
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#19Jan 11, 2018, 01:38 AM
Maybe that $115k is strong support, as he said, but the only problem is selling might be stronger and can easily wipe out all those big liquidity under $115k; even the strong support at $113k is wiped out. Now, the price is in a consolidation phase and undecided yet, but if you check the wider view, it seems the price is just filling out all those big FVGs. We know that FVG acts as a magnet. Another FVG in the 4-hour time frame is under $110k; if the price breaks the lower low of this week, it might fill that zone before going bullish again or break that zone and go below $110k. No one knows what will be, but in a daily time frame, it is still bullish unless it breaks this $109k.
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ryangangMember
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#20Jan 13, 2018, 10:07 AM
This kind of pump and dump is very normal with bitcoins due to it's highly volatile nature so it will not be wise to change your decision about holding bitcoins just by seeing this dump. There are still chances that prices might rebound again and will show us some positive growth before the end of September. We should try to combine macro analysis along with on-chain data as that will give more accurate insights and on-chain data shows large buy volume so this does prove that there are still changes of hitting $120k in this month itself. We have seen bitcoins pump by almost 5% in a day which is very common so why not expect the same this month as well? October is going to be a great month, but I'm personally excited even about September as it is going to show us some positive growth.
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