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The Fed rate is being cut have boosted the confidence of Bitcoin investors, with whales buying up to 1.6 billion BTC since the big decision. With such a bullish outlook, there is a chance that the flagship crypto can it quickly reaches $70,000.
Fed Rate Cuts Prompt Buying Spree Among Bitcoin Whales
The Fed’s rate cut prompted buying in the middle Bitcoin whales. These investors bought more than 1.6 billion worth of Bitcoin following the September 18 major decision. Enter TheBlock shows that these whales have bought 25,510 BTC since September 19.
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This collection of habit not surprising, as the 50 bps interest rate cut has given a bullish outlook for risk assets, including Bitcoin. The leading crypto is expected to experience a significant price increase as more money will flow into its ecosystem as investors are able to access more money following the Federal Reserve’s quantitative easing (QE).
As Bitcoin is expected to enjoy a major move to the upside, a rise to $70,000 in the near future is possible. The best crypto has emerged changed the price level of $60,000 as support following a Fed rate cut and holding comfortably above that level. As expected, more liquidity is already flowing into the BTC ecosystem, as seen in the $1.6 billion purchases by these whales.
Therefore, it should not be long enough before the crypto reaches the $70,000 price level. Bitcoin reaching this level is important as it could pave the way for BTC to hit a high-time high (ATH). The $70,000 price level has served as a strong resistance since the crypto fell below this level after rising to its current ATH of $73,000 in early March.
However, Bitcoin could easily break above this resistance this time, considering that it has more momentum due to the Fed’s rate cut.
History can repeat itself
In addition to the Fed’s rate cut, Bitcoin’s historical trend provides a bullish view for the top crypto and suggests that a rise to $70,000 should happen soon enough. Crypto analyst Ali Martinez it was recently noted that Bitcoin enjoyed a price increase of 61% and 171% in 2016 and 2020, respectively. These years were two half a year.
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The analyst also revealed that the price action of Bitcoin this year reflects 2016 and 2020. Therefore, history may repeat itself, and the flagship crypto may enjoy benefits similar to those of previous years.
In addition, Q4 of each year historically that is when Bitcoin enjoys its most advantages. Therefore, BTC should see significant price gains heading into the latter half of this year. Meanwhile, the post-halving rally is also around the corner, which could trigger this price increases to $70,000.
At the time of writing, Bitcoin is trading around $63,900, up more than 1% in the last 24 hours, according to data from CoinMarketCap.
The featured image was created with Dall.E, a chart from Tradingview.com