With the Federal Reserve (FED) interest rate cut fast approaching, the debate over the impact of the event on BitcoinThe largest crypto asset has been on a significant rise within the community. However, one cryptocurrency analyst who delves into the topic has predicted a price implication similar to past scenarios, particularly in 2019.
An imminent crash and fall in Bitcoin performance
Apsk32, a cryptocurrency expert and engineer, has offered insight into the implications of Bitcoin’s price performance following the Federal Reserve’s interest rate cut expected to take place on September 18. The expert predicts that Bitcoin could experience a price impact in 2024 similar to that seen in 2019 after rates were cut.
According to the cryptocurrency expert, when the Federal Reserve In August 2019, when the US government cut interest rates, Bitcoin experienced a surge of about 20% in a week. However, about three months after the event, the digital asset lost its momentum and plummeted by more than 33%, sparking pessimism in the industry.
Comparing the two eras, Apsk32 is confident that if the Fed decides to adopt monetary easing this year, BTC price performance could reflect the same positive and negative trend of 2019 after the event.
While the analyst believes BTC could experience a similar surge, collapseHe is not sure that the coin will fall 33% from now on. As a result, he has placed his base price for Bitcoin between the $45,000 and $55,000 level before finally seeing a rally in 2025, which is believed to be a promising year for the crypto asset.
Apsk32 seems to be very bullish on Bitcoin and its long-term potential, as evidenced by his comment above. Bold forecast where he predicts a price of $2.6 million per BTC in the future. His projection is based on the market capitalization of the digital asset, which is aligned with a power law.
The expert noted that since 2011, a power law has governed the purchasing power of BTC’s market capitalization, so if the pattern persists, the value of the coin will reach $2.6 million in the next 10 years.
A wave of bullish predictions for BTC
This marked optimism from Apsk32 coincides with that of asset management firm VanEck, which also predicted a similar price range for BTC in the long termThe asset manager of more than $100 billion in its latest… report BTC is projected to be worth $2.9 trillion by 2050, translating to an overall market cap of a massive $61 trillion.
Van EckThe prediction is driven by the notion that Bitcoin could be used to settle approximately 10% of global international trade and 5% of global domestic trade by 2050, possibly leading to central banks insuring 2.5% of their assets in Bitcoin.
It is worth noting that the aforementioned target price is the firm’s base case for BTC, while its worst and best case scenarios are set at $130,000 and $52.4 million respectively.
Featured image from Unsplash, chart from Tradingview.com
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