Bitcoin At $64,000? This Fed Reversal Could Change Everything (and Very Quickly)

Bitcoin, often compared to digital gold, is now at a crossroads. As global financial markets scrutinize the decisions of the US Federal Reserve, a potential interest rate cut could propel the first cryptocurrency to new heights. In a context of controlled volatility, and after months of stagnation, optimism is reborn: some experts, like Charles Edwards from Capriole Investments, already see Bitcoin reaching $64,000 in the near future.

A favorable context thanks to the Fed

The imminent announcement of a reversal in US monetary policy could be the long-awaited catalyst for the Bitcoin market. The Federal Reserve, after aggressively raising interest rates since 2021, is about to adopt a more accommodative approach. This change of course, expected at the next Fed meeting, would mark the end of a tightening cycle that saw the price of Bitcoin drop from $60,000 to $15,000. Charles Edwards, founder of Capriole, believes that this new monetary dynamic would offer fertile ground for a rapid recovery of the digital asset, with a target set at $64,000 if conditions remain favorable. For Edwards, “we are on the brink of an era opposite to the one that plunged Bitcoin“, which suggests substantial gains for investors.

Technical data also seems to support this scenario. If Bitcoin manages to maintain its current supports and exceed $60,000, a rapid rise to $64,000 becomes plausible. Edwards, however, reminds that everything will depend on the absence of negative surprises from the Fed. The fourth quarter, historically favorable to Bitcoin, could thus see the cryptocurrency regain its bullish momentum, after a period of consolidation marked by macroeconomic uncertainties.

A decisive fourth quarter

If Capriole Investments’ forecasts come true, the fourth quarter could well be the period of all possibilities for Bitcoin. Historically, this part of the year has always been the most favorable for the queen of cryptos, with average returns of nearly 89%. Charles Edwards recalls that market volatility has often played in favor of Bitcoin during this period, marking significant rebounds after phases of consolidation. With the possibility of a Fed monetary policy easing, the conditions seem ideal for Bitcoin to not only regain its previous levels but surpass them. Previous post-Fed policy bullish cycles and market dynamics suggest a similar scenario for the end of 2024.

However, some nuances remain. While historical data is encouraging, the current macroeconomic context remains complex, especially with rising uncertainties around traditional markets. Additionally, the recent adoption of Bitcoin ETFs in the United States has also blurred some on-chain analyses, with significant capital movements disrupting classic supply indicators. For Edwards, although these fluctuations may create short-term distortions, they should not hinder the underlying bullish trend that seems to be setting in for Bitcoin.