Bitcoin Faces Short-Term Volatility Following Anticipated Fed Rate Cut, Warns Market Analyst

As the Federal Reserve prepares for an imminent rate cut, the crypto community is abuzz with discussions on how Bitcoin will react to this event, especially on September 18. Doctor Profit, a prominent market expert, has cautioned investors about potential short-term panic in the aftermath of the rate cut.

Expressing concerns on the X platform, Doctor Profit highlighted the likelihood of brief sell-offs and market corrections as investors navigate economic changes. Despite anticipating short-term volatility, the expert remains optimistic about Bitcoin’s long-term prospects. Doctor Profit specifically foresees a short-term panic if the Fed reduces the interest rate by 0.50%, particularly amidst geopolitical tensions like a potential Israel invasion of Southern Lebanon. This chaos could present buying opportunities for investors, emphasizing the importance of holding positions for now.

While acknowledging the wild short-term volatility, Doctor Profit refrained from predicting Bitcoin’s exact price point, maintaining positions between $50,000 and $53,000 established during the previous Monday’s market dip. He also warned of potential price manipulations and advised vigilance against scam wicks during this period.

Furthermore, Doctor Profit emphasized the Fed’s potential use of geopolitical threats as a smokescreen to address underlying fears. To mitigate risks, the expert has implemented stringent risk management strategies to safeguard spot holdings and long positions with set stop-losses until the month’s end.

In light of the impending short-term panic, Doctor Profit advised investors to focus on survival rather than predicting Bitcoin’s immediate trajectory, stressing the importance of having a robust plan during such uncertain times.

Looking ahead to the market’s response, Doctor Profit outlined a 50-50 chance of a 0.50% or 0.25% rate cut on September 18. He suggested that a 0.25% cut might not significantly impact the current market conditions. The expert warned of a potential market decline akin to the previous “Blood Monday” if the Fed opts for a lesser rate cut, emphasizing Chairman Jerome Powell’s efforts to avert such a scenario.

Powell is expected to emphasize the rapid drop in inflation and express satisfaction with the Fed’s proactive rate-hike strategy, signaling economic resilience and potential future cuts. The market awaits the Fed’s decision and its implications on Bitcoin’s movement, with investors bracing for possible short-term turbulence.

In conclusion, the crypto market remains on edge as the Federal Reserve’s rate cut looms, with Bitcoin’s performance poised for significant shifts amid global economic uncertainties.