Bitcoin Dips Below $64,000 as Fed Signals Future Rate Cuts

Bitcoin (BTC) opened the week on a downward trend, falling from a high of $65,634 to an intraday low of $63,049 on Monday. The leading cryptocurrency failed to rebound even after Federal Reserve Chair Jerome Powell hinted at future interest rate cuts in a speech to the National Association for Business Economics.

As of this writing, Bitcoin is trading at $63,344, down 3.6% over the last 24 hours according to data from CoinMarketCap. The correction comes after Bitcoin reached a two-month high of $66,500 last Friday, fueled by fresh market liquidity following the Fed’s 50 basis point rate cut on September 18th.

Fed Chair Powell Outlines Cautious Approach to Future Rate Cuts

Powell indicated that while additional rate cuts are part of the Fed’s plan, they will likely be more gradual than the recent 0.5% decrease. “If the economy evolves broadly as expected, policy will move over time toward a more neutral stance,” Powell stated. He projected two more 0.25% rate cuts in 2024, emphasizing a cautious approach.

Despite the short-term pullback, Bitcoin remains on track to close Q3 with positive returns. Data from CoinGlass shows Bitcoin up 0.6% for Q3 and 7% higher in September overall.

Long-Term Outlook Remains Bullish Despite Short-Term Volatility

Some analysts remain bullish on Bitcoin’s Q4 outlook, with crypto analyst Doctor Profit predicting Bitcoin could reach $550,000 by 2030 if current growth trends continue. However, Doctor Profit also cautioned that periodic 40-50% corrections are likely as Bitcoin approaches key price milestones like $120,000, $160,000 and $220,000 in the coming years. He views these as healthy pullbacks and buying opportunities rather than the start of prolonged bear markets.

In the nearer term, Bitcoin faces immediate support around $63,000, with the next major support level at $62,850. On the upside, Bitcoin will need to overcome resistance at $64,500 to regain bullish momentum. A clear break above $65,500 could open the door for a push toward $66,200 and potentially $68,000.

Institutional Interest Continues to Grow

While Bitcoin’s price experiences short-term volatility, institutional interest in the cryptocurrency continues to grow. According to blockchain data analytics firm Arkham Intelligence, Tesla now holds a staggering $725 million worth of Bitcoin, up from $640 million at the end of June 2024. This increase aligns with the broader trend of institutional investors and publicly traded companies expanding their crypto portfolios.