Crypto analysts closely monitor the Federal Reserve’s upcoming interest rate decision, which could significantly influence cryptocurrency prices. Analysts believe a potential rate cut might encourage investors to take on more risk, leading to a surge in crypto investments.
In a recent episode of the Thinking Crypto podcast, the host explained how a rate cut could lead investors to look for riskier assets such as cryptos. There are expectations for a possible rate cut of either 25 bps or 50 bps, which may result in an “easy money cycle.” Such a move can influence investors’ risk appetite and prompt them to search for higher-risk investments like Bitcoin.
Also Read: MicroStrategy Expands Bitcoin Holdings with $1.11 Billion Purchase
Volatility Expected Before Bitcoin Bull Run
Nevertheless, analysts are also expecting fluctuations in the prices of digital assets, especially the flagship cryptocurrency – Bitcoin. Analysts believe the markets are due for a drastic pullback before the next bull market. Bitcoin could dip below $50,000 but range up to $46,000 once again as its prices fluctuate.
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Despite this forecast, indicators such as the Pi Cycle Top suggest that Bitcoin’s bullish cycle may not end. Bitcoin’s 100-day moving average remains above its 350-day moving average, hinting that the upward trend could continue. Bitcoin’s price slowed after an earlier rally, and many believe the cryptocurrency is now moving at a more regular pace, aligning with broader market cycles.
Bitstamp’s XRP Ledger Integration Could Boost XRP
Although the primary focus is Bitcoin, other cryptocurrencies are also in the spotlight. Although Bitstamp has already implemented the Ripple payment protocol, it can majorly influence the price of XRP. By buying Bitstamp, Robinhood aims to strengthen its position in the global crypto market and works with Ripple to enhance the opportunities of the XRP Ledger.
Now in its last phase, the partnership is also expected to captivate some of the leading global commercial banks out of 30. According to the head of partnership at Bitstamp, Eva Gartner, this integration can create a path for the organization to provide crypto services, improving the position of XRP in the market.
Also Read: SEC Reiterates Crypto Scam Warning Amid Rising Fraud Concerns
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.