For months, the shallow movements in Bitcoin and altcoins have exhausted investors. This has also led to a decrease in risk appetite. On the other hand, historical data shows that such long, boring periods eventually end. A strong signal for a new upward movement in cryptocurrencies may have arrived. But why is an increase expected?
Interest Rate Cuts and Bitcoin
According to Kobeissi Letter’s assessment on August 25, US money market funds surpassed $6.2 trillion, reaching an all-time high. What does this mean? It signifies a strengthening expectation of interest rate cuts. Statements from Powell and Fed members indicate that the cuts, which will be a lifeline for cryptocurrencies, will begin in September.
In its latest assessment, Kobeissi Letter clearly stated that the high-interest rate period has ended;
“Most of the inflows are driven by institutional investors positioning their portfolios in anticipation of Fed rate cuts… The high-interest rate period is ending.”
According to the FedWatch tool, there is a 100% expectation of a cut at the meeting on September 18. The expectation of a 25bp cut is 65.5%, while the 50bp cut prediction is 34.5%. Popular crypto analyst Titan of Crypto also expects a new move to $68,000 for this reason.
“Bitcoin is progressing towards the $68,000 target. BTC’s 18% rise continues.”
Bitcoin September Forecast
August had gained a reputation as a bearish period in previous years, but after a long period of weakness, investors did not expect such a scenario this time. However, September presents a much more optimistic picture. According to analyst Mikybull, the weekly chart setup targeting $95,000 can keep investors hopeful.
“Bitcoin seems ready for its final rise (5th wave). There are price targets of $95,000 and then $143,000.”
On Friday, BTC ETFs saw a net inflow of over $250 million, and the appetite among investors familiar with traditional markets supports the September motivation. However, despite attempts in the last 24 hours, the $65,000 threshold has not been surpassed. This indicates that profit-taking continues at higher levels, meaning most investors are still not fully convinced of the rise.
