The price of Bitcoin (BTC) is in a tense lull around $110,000. The market is waiting for any signs that could advance what Federal Reserve Chairman Jerome Powell might say on September 17. That's when we'll know if the U.S. monetary policy body will finally decide to cut interest rates.
And what does this have to do with Bitcoin? Simply put, low interest rates make it cheaper to borrow money, which translates into an injection of liquidity that can be channeled into financial assets like stocks, Bitcoin, and cryptocurrencies.
Carmelo Alemán, financial analyst, commented in statements with this outlet that "if the global money supply rises, after a short time, two or three months, that is transferred to Bitcoin because people always tend to invest part of their money in BTC, and the price tends to rise."
CriptoNoticias has shown that the majority expectation is that Jerome Powell will indeed announce interest rate cuts. on Wednesday of next week.
On the decentralized betting platform Polymarket, users estimate that there is an 87% chance that the Fed will cut interest rates by 25 basis points, as seen in the following image:
At Polymarket, users (who bet real money) overwhelmingly believe the Fed will cut interest rates. Source: Polymarket.
Analysts at Coinbase, the largest bitcoin and cryptocurrency exchange in the United States, believe there will not only be an interest rate cut in September, but at least another one before the end of 2025.
And Bloomberg specialists Jonnelle Marte and Catarina Saraiva comment:
Investors are already fully pricing in a quarter-point rate cut at the Fed's September 16-17 policy meeting. They are also close to anticipating a total of three rate cuts this year, according to futures contracts. Some Fed watchers said weak jobs data could prompt officials to consider a larger-than-usual half-point rate cut this month, although inflation data due next week could temper those expectations.
Jonnelle Marte and Catarina Saraiva, Bloomberg analysts.
All of this sounds like very good news for Bitcoin, and it is. However, the market is waiting for certainty, not speculation. Therefore, it is very likely that as mentioned at the beginning of this article short-term traders and investors (those who buy and sell BTC based on the daily news) will be waiting for any hint or rumor about what Powell will say on September 17.
Regular readers of this news portal know that Powell, in his monthly presentation, not only announces interest rates, but also gives a traditional speech in which he anticipates the Fed's upcoming moves. What he says there can change the course of the financial markets.
For these reasons, Bitcoin remains in the countdown. Speculation aside, the moment of truth will come on September 17, and then, most likely, the BTC price will react accordingly to Powell's statements.
