Bitcoin Rollercoaster After Fed Rate Cut: Over 60,000 Liquidations, $198 Million Evaporated, Experts Predict $100,000 by Year End

Bitcoin Rollercoaster After Fed Rate Cut: Over 60,000 Liquidations, $198 Million Evaporated, Experts Predict $100,000 by Year EndBitcoin experienced heightened volatility on September 19, initially rising by around 2%, then plunging in the early hours, wiping out the gains before bouncing back. As of press time, Bitcoin is trading at $62,493

Bitcoin Rollercoaster After Fed Rate Cut: Over 60,000 Liquidations, $198 Million Evaporated, Experts Predict $100,000 by Year End

Bitcoin experienced heightened volatility on September 19, initially rising by around 2%, then plunging in the early hours, wiping out the gains before bouncing back. As of press time, Bitcoin is trading at $62,493.3, up 3.74%.

Behind the "rollercoaster" ride, data from Coinglass shows that 67,405 individuals were liquidated in the past 24 hours, resulting in a loss of $198 million (approximately 1.4 billion yuan). Since hitting a record high of nearly $74,000 in March, Bitcoin has remained relatively range-bound. Karim Dandashy, an over-the-counter trader at FlowdeskUS, said, "After weeks of bouncing between 25 and 50 basis points, the market took a slight breather, and knee-jerk reactions intensified."

The recent Bitcoin volatility is closely linked to the Federal Reserve's rate cut. After a two-day monetary policy meeting, the Federal Reserve announced on September 18 that it would lower the target range for the federal funds rate by 50 basis points to between 4.75% and 5.00%. This is the first rate cut by the Fed since March 2020 and marks a shift in monetary policy from tightening to easing.

At a press conference following the meeting, Fed Chair Jerome Powell called the 50 basis point rate cut a "strong action," while stating that the Fed does not believe it "acted too slowly," but that it was a "timely move."

Hedge fund manager Anthony Scaramucci is optimistic about the future direction of Bitcoin. He predicts that Bitcoin will hit new highs, driven by the Fed's rate cuts and the clarification of US cryptocurrency regulations following the November presidential election.

In the first phase of the next Congress, we will see legislation that is favorable to cryptocurrencies, Bitcoin, and stablecoins, said the founder of SkyBridge Capital LLC on September 18. At the same time, we have this Fed rate cut.

Scaramucci said he favored bipartisan legislation with support from both Republicans and Democrats. In a close race with Vice President Kamala Harris for the White House, Republican presidential nominee Donald Trump has embraced cryptocurrencies to attract donations and votes. Harris has been less clear on her stance on digital assets.

Scaramucci said the Fed would lower rates by at least 150 basis points over the next 18 months. Thats going to be very good for asset prices in the U.S. and globally, he added, predicting Bitcoin could reach $100,000 by year end. He made these comments while attending a conference in Singapore.

It is important to note that the above information is for reference only and does not constitute investment advice. Any actions taken based on this information are at your own risk.

This article is compiled based on CCTV News and publicly available information.