Crypto Analysts Debate the Future of the Crypto Market After Bearish Reaction to Rate Cut

Crypto analysts debate the future of the crypto market

The bearish price reaction following the 25 bps rate cut has many worried

Seasoned analysts remain bullish for the long-term from the QT end announcement.

The crypto market faces another disappointing price dip as the aftermath of the FOMC meeting unfolds. In detail, the Fed announced another 25 bps rate cut, following the same in September. It also confirmed QT ending in December, sparking hope for a bullish end to the year. As crypto analysts debate the future of the crypto market following the current bearish reaction to the rate cut, bullish expectations grow

Crypto Analysts Debate the Future of the Crypto Market

Over the last 24 hours, sentiments took a complete turn regarding the FOMC meeting. The crypto community expected to see a 25 bps rate cut and hoped for hints of QT ending. As predicted the Fed announced a 25 bps rate cut and got a bonus revealing that QT will end by December 1. While this does not confirm that QE will begin within the same month, it did spark bullish hope for those waiting for greater crypto price pumps

As we can see from the post above, most analysts echo the same bullish sentiment, that the price of BTC has one more final pump in it before relinquishing dominance to altcoins. According to this reputed crypto analyst, he is adamant that the price of BTC will go on a vertical move when nobody expects it and that the price of Ethereum will follow through, triggering the cycle’s long-awaited altseason

Responses to the post say that it is not as clear as the analyst expects as vertical moves are not a promised pump following rate cuts, rather vertical moves come from liquidity rotation. The same response says that weak labour data doesn’t print new highs, it is fresh liquidity that does. Without it, rate cuts are just air in the system, not oxygen. Markets don’t rise because the Fed says so, they rise when money starts flowing again, not when policy hopes it will.

Crypto Market’s Bearish Reaction to Rate Cut

This shows that even analysts are torn between expecting bullish and bearish reactions going ahead. According to CoinMarketCap analytics, the price of BTC fell from $112,000 to the $109,000 price range following the rate cut announcement, and is currently trading in the $110,000 price range. Similarly, the price of ETH fell from the $4,000 price range to $3,800 and is now trading at $3,900.

The post above illustrates the frustration of crypto traders, particularly altcoin traders, who describe this cycle as the worst yet. Altcoin holders have barely seen any gains, while only long-term and early BTC holders have reaped the best gains during this bull cycle. Responses show encouragement, as many believe altseason is yet to play out and that new ATH will arrive in the months ahead