With Bitcoin standing at a steady $10,200 Tuesday after some sideways activity, many enthusiasts are getting their party horns ready ahead of an expected Federal Reserve interest rate cut Wednesday.
For a while now, there’s been debate over whether interest rate changes are going to push Bitcoin value higher as people see the cryptocurrency as a safe haven in a volatile market.
One of the most prolifically cited bitcoin bulls, Anthony Pompliano of Morgan Creek Digital Assets who many BTC investors know as “the Pomp,” put out a tweet August 11 describing this philosophy in a concise way, as reported at Coindesk.
Noting that J.P. Morgan believes the Fed will have to reintroduce quantitative easing in order to fight potential lack of liquidity, Pomp suggests three two-word steps for Bitcoin price increases:
- Cut rates
- Print money
- Bitcoin halving
The halving of Bitcoin mining rewards set for next May is also expected to juice the Bitcoin market. In this environment, as we wait for news from Powell and the gang at the Fed, the Pomp is not the only one breathlessly ebullient on Bitcoin. Max Keiser, another much-followed BTC enthusiast, suggests that negative interest rates will push Bitcoin prices to $100,000 per coin.
Omkar Godbole at Coindesk presents a more balanced outlook today:
“The bears have gained an upper hand in the last 24 hours despite record high miner confidence, and a deeper drop may unfold in the next 24 hours.,” Godbole writes. “The decline, however, could end up trapping sellers on the wrong side of the market, according to some observers, who expect BTC to benefit from an impending 25 basis point U.S. rate cut on Wednesday.”
Do your own research and look out for BTC moves either way.
