Crypto Analyst Predicts Potential Crash After FedS Rate Decision
A prominent crypto expert warns that Bitcoin and Ethereum might face a meaningful price drop following the Federal Reserve’s interest rate cut decision.
In a recent post, Ash Crypto, who boasts over 2 million followers, projected a possible Bitcoin plunge to $100,000 if the Fed cuts rates by 0.25%.He also suggests Ethereum could fall from $4,500 to $3,800 under similar conditions.
This potential crash stems from the market already factoring in the expected 25-basis-point reduction. However, Ash believes a larger, 50-basis-point cut would lead to a bullish surge for these cryptocurrencies.
His prediction aligns with those of major financial institutions.For instance, JPMorgan cautioned clients of a potential “Sell the News” event where traders may offload assets following the expected rate cut. Similarly, RBC Capital Markets expressed concerns over investor fatigue impacting the market.
Nonetheless, Ash remains optimistic about a crypto market rebound soon after the initial dip. He predicts Bitcoin to reclaim heights up to $150,000 and Ethereum to rise between $7,500 and $10,000.
Several factors support this anticipated recovery. Historically, the fourth quarter has been beneficial for the crypto market.Additionally, with expectations of a lower interest rate habitat, coupled with potential regulatory approvals for altcoin ETFs, the path looks promising for cryptocurrency enthusiasts.
