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How Will The US Upcoming Fed Rate Cut Impact Bitcoin? QCP Analysts Weigh In

How Will The US Upcoming Fed Rate Cut Impact Bitcoin? How Will The US Upcoming Fed Rate Cut Impact Bitcoin?
As the United States Federal rate cut is fast approaching, analysts at QCP Capital, a global digital asset trading firm and market maker has now shared their on how this development could impact Bitcoin price.

According to the analysts, the upcoming U.S. non-farm payroll report and Friday’s GDP data will play crucial roles in shaping Bitcoin market sentiment.

Notably, these economic indicators are expected to offer greater clarity on whether the Federal Reserve will commence a rate-cutting cycle in its next Federal Open Market Committee (FOMC) meeting on September 18.

Economic Data To Influence Bitcoin’s Market Movements

The QCP analysts has revealed that the anticipation of these events has led to cautious positioning among market participants, therefore this signals a potential “subdued volatility” for Bitcoin in the near term.

Scheduled for release by September 6, the United States non-farm payrolls report is one the major economic metric that could very well influence the Federal Reserve’s interest rate decisions.

The previous report earlier this month showed a rise in the , which triggered a noticeable plunge in the global financial market. Notably, this increase raised concerns that the Fed might be falling behind in its efforts to adjust rates accordingly. In addition to the payroll data, today’s upcoming US GDP report could also affect Bitcoin’s price performance, although QCP Capital analysts believe its impact on the cryptocurrency market may be limited. The analysts noted:
Tonight’s US GDP report is likely to be a non-event for crypto, especially if it reinforces the ongoing narrative of a slowing US economy.

Bitcoin Market Performance And Price Action Outlook

Amid these upcoming economic developments, Bitcoin has returned to a bearish trend after briefly recovering to over $61,000 yesterday.

Currently, Bitcoin is trading at $58,285, marking a 4.3% decline in the past 24 hours. This drop has prompted various market analysts to offer their updated insights on the asset’s short-term prospects.

For instance, Elja Boom, a well-known crypto analyst on X, commented on the ongoing consolidation, :
No signs of breakout yet. Consolidation could happen till October before breakout. I’m confident of a breakout in Q4 but before that, there’ll be some more choppiness.
Meanwhile, another analyst, known as ‘Titan of Crypto’ on X, a short-term update, highlighting a key resistance level. The analyst highlighted the $59,600 price mark as a major level for Bitcoin.

According to the analyst, should Bitcoin reclaim this price levels and breaks through the cloud twist, “the clouds would flip from resistance to support” and this might just result in a major rally to the upside for Bitcoin.

Featured image created with DALL-E, Chart from TradingView
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