Fed Rate Cut Sends Bitcoin on Rollercoaster Ride, $198 Million Liquidated in 24 Hours, Analyst Forecasts Year-End Surge to $100,000

Fed Rate Cut Sends Bitcoin on Rollercoaster Ride, $198 Million Liquidated in 24 Hours, Analyst Forecasts Year-End Surge to $100,000Bitcoin prices experienced wild swings on September 19th, opening with a 2% gain and falling sharply after 2 am, erasing the early gains. The digital currency then rebounded, reaching $62,493

Fed Rate Cut Sends Bitcoin on Rollercoaster Ride, $198 Million Liquidated in 24 Hours, Analyst Forecasts Year-End Surge to $100,000

Bitcoin prices experienced wild swings on September 19th, opening with a 2% gain and falling sharply after 2 am, erasing the early gains. The digital currency then rebounded, reaching $62,493.3 at press time, marking a 3.74% increase. Data from Colinglass revealed that $198 million (approximately 1.4 billion yuan) was liquidated within 24 hours, impacting 67,405 traders.

Since reaching a record high of nearly $74,000 in March, Bitcoin has been trading within a relatively narrow range. Karim Dandashy, an OTC trader at FlowdeskUS, commented, "After weeks of sideways trading between 25 and 50 basis points, the market took a breather, leading to increased knee-jerk reactions."

The volatility in Bitcoin prices is closely tied to the Fed's decision to cut interest rates. On September 18th, the Federal Reserve announced a 50 basis point reduction in the federal funds rate target range, bringing it to 4.75% to 5.00%. This marked the first rate cut since March 2020, signifying a shift in monetary policy from a tightening cycle to a loosening one.

During the post-meeting press conference, Fed Chair Jerome Powell labeled the 50 basis point cut a "strong action" and asserted that the Fed did not believe they were "moving slowly" with rate cuts but rather considered it a "timely move."

Hedge fund manager Anthony Scaramucci predicts Bitcoin will hit new highs fueled by both the Fed's rate cuts and the expected clarity on US cryptocurrency regulation following the November presidential election.

"In the first phase of the next US Congress, we will see legislation that favors crypto, Bitcoin, and stablecoins," said the founder of SkyBridgeCapitalLLC on September 18th. "At the same time, we are also running into a Fed rate cut."

Scaramucci expressed preference for bipartisan legislation, supported by both Republicans and Democrats. In a fierce competition for the White House against Vice President Kamala Harris, Republican presidential candidate Donald Trump has moved towards endorsing cryptocurrencies to attract donations and votes. Harris stance on digital assets remains less clear.

Scaramucci anticipates at least 150 basis points of rate cuts from the Fed over the next 18 months. "That will be very bullish for US and global asset prices," he added, forecasting a potential rise to $100,000 for Bitcoin by year's end. He made these comments while attending a conference in Singapore.

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