The head of financial consultancy giant DeVere says the Federal Reserve is likely to inadvertently push the price of Bitcoin higher this week.
Nigel Green says he thinks the US central bank will likely decide to cut interest rates at its meeting on September 18th, reports ValueWalk.
“The Fed looks likely to follow the European Central Bank and cut rates this week by perhaps a quarter of a percentage point. This comes after it slashed interest rates for the first time in a decade in July on U.S.-China trade war tensions.
Bitcoin, the world’s largest cryptocurrency by market cap, is likely to breakout of its recent sideways trading pattern and be given a healthy boost by the Fed’s rate cut. This is because an interest rate cut reduces the incentive to keep the fiat currency. In addition, rate cuts typically lead to higher inflation, which reduces the purchasing power of traditional currencies.
As such, Bitcoin, and other decentralized cryptocurrencies, become more attractive and the price will adjust upwards accordingly.”
Last month, Green predicted Bitcoin will hit $15,000 by the end of the year.
Right now, most of the crypto market is in the red, with a few coins in the top 10 showing green. Bitcoin is down 1.62% at $10,156, according to COIN360.
Ethereum is up 1.33% at $191.28, XRP is down 0.23% at $0.2589 and Litecoin is up 0.86 at $70.50.
NewsBTC analyst Aayush Jindal says he’s looking for Bitcoin to hold the line above $10,250, and its recent break below that line could signal trouble ahead.
“Bitcoin price is holding an important support near $10,300 against the US Dollar.
BTC could rise steadily towards $10,500 as long as it is above $10,250 and $10,300.”
Here’s a look at the latest forecasts from across the cryptoverse.
Cointelegraph – Tracking a bullish start to the day for LTC
Bitcoin Cash, EOS, Tron, Cardano
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