Bitcoin, regressive account until September 17

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By Berto R

  • An interest rate cut will be favorable for Bitcoin and cryptocurrencies.

  • The majority expectation is that the Fed will make feat cuts, but the market wants certainties.

The price of Bitcoin (BTC) is in a tense calm around $ 110,000. The market is expectation of any signal that Jerome Powell, president of the United States Federal Reserve (Fed) on September 17 could say. It will be known that day if the governing body of US monetary policy finally decides, we cut interest rates.

And what does this have to do with Bitcoin? To explain it in a simple way, Low interest rates make it cheaper to ask for money borrowedwhich is equivalent to a liquidity injection which can move to financial assets such as shares, bitcoin and cryptocurrencies.

Carmelo German, financial analyst, commented in exclusive statements to this medium that «if the world monetary mass rises, soon, two or three months, that is transferred to Bitcoin because a part of the money always people always invest it in BTC and usually rises in price.»

Cryptootics has shown that The majority expectation is that, indeed, Jerome Powell announced cuts in the interest rate Wednesday of next week.

In the decentralized betting platform, Polymarket, users estimate that there are 87% probability that the Fed decreases interest rates by 25 basic points, as seen in the following image:

Polymarket website screenshot.
In Polymarket, users (who bet real money) believe mostly that the Fed will cut interest rates. Source: Polymarket.

Coinbase analysts, Bitcoin’s exchange and larger cryptocurrencies in the United States, believe that there will not only be interest rates cut in September, but there will be at least another one before the end of 2025.

And Bloomberg specialists, Jonnelle Mars and Catarina Saraiva, comment:

«Investors are already fully discounting a cut of type type at the Fed Monetary Policy Meeting of September 16 and 17. They also come to anticipate a total of three type cuts this year, according to futures contracts. Some Fed observers stated that the weak employment data could boost officials to consider a half -point cut than usual this month, although inflation data that will be published next week could moderate those expectations.

Jonnelle Mars and Catarina Saraiva, Bloomberg analysts.

All of these seem very good news for Bitcoin, and they are. But, The market is waiting for certainties and not speculation. Therefore, it is very likely that – as mentioned at the beginning of this text -, the traders and short -term investors (which are the ones that buy and sell BTC with the news of the day to day), are waiting for any indication or rumor about what Powell will say on September 17.

The usual readers of this informative portal know that Powell, in their monthly presentation, not only announces the interest rates, but also gives a traditional speech in which he anticipates next movements of the Fed. What he says there can change the course of financial markets.

For these reasons, Bitcoin remains in countless account. Beyond speculation, The time of truth will arrive on September 17 And there, most likely, the price of BTC reacts accordingly with Powell’s statements.

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