Zerocap Predicts Bitcoin Volatility Following Fed Rate Decision

According to Cointelegraph, Australian crypto trading firm Zerocap believes Bitcoin's price is "difficult to predict" following the Federal Reserve's September 18th interest rate decision, potentially seeing a drop to $53,000 or a rise to $65,000.

Jonathan de Wet, Zerocap's Chief Investment Officer, stated that the market currently anticipates a 62% probability of the Fed lowering interest rates by at least 50 basis points (0.5%). This speculation contributed to Bitcoin's brief surge to $60,000 on September 13th.

However, Wet cautioned that the uncertainty surrounding the immediate impact of a rate cut makes price movements "difficult to predict." He added that the upcoming US presidential election in November further complicates the situation.

"Following the recent range lows, we see a downside target for BTC of $53,000, while upside targets of $65,000 are in play after breaking out of a descending wedge," he stated.

"With the election approaching, predicting direction will be difficult," he concluded, "but risk sentiment should lead to short-term positive sentiment."