Bitcoin’s recent price consolidation around the $62,000 mark is raising expectations of a major move in the near future, according to market analysts. While the direction of this move remains uncertain, traders are watching two key events closely: potential further interest rate cuts by the US Federal Reserve and the possibility of a large Bitcoin sale by the US government.
Crypto trader Daan Crypto Trades noted in an Oct. 9 post on X (formerly Twitter) that Bitcoin has become “very compressed” after hovering around $62,000 for several days. He suggested that Bitcoin’s next move is likely to be significant but advised caution, recommending that traders wait for clearer signals before making any decisions.
Federal Reserve Cuts and Crypto Market Impact
The US Federal Reserve’s recent 50 basis points interest rate cut on Sept. 18 has already influenced investor sentiment, and further cuts are expected. Financial experts predict the Fed will continue reducing rates, with HSBC forecasting a series of 25 basis point cuts starting in November. These cuts are generally seen as positive for riskier assets like Bitcoin, as traditional investments such as savings accounts become less attractive.
Bitcoin is trading at $61,920, down 0.38% over the past 24 hours. Source: TradingView
Jack Mallers, CEO of Strike, commented on the broader economic implications, warning that the Fed’s decisions could hurt holders of US dollars. He said, “The Fed has begun cutting rates… those holding US dollars will pay for their mistakes.”
Potential Silk Road Bitcoin Sale Sparks Concerns
Further adding to market uncertainty is the potential sale of Bitcoin seized by the US government from the Silk Road marketplace. On Oct. 8, the US Supreme Court declined to hear a case regarding the ownership of 69,370 Bitcoin (worth $4.38 billion). This opens the door for a government sale, which could impact Bitcoin’s price in the short term.
Bitget’s chief analyst, Ryan Lee, warned that the sale could cause short-term volatility and lead to a temporary price drop due to increased supply in the market.
With uncertainty looming, market participants are closely monitoring these events, anticipating a large move in Bitcoin’s price soon.
