Will Federal Reserve stop increasing interest rates in September, & will Bitcoin prices go up as a result?

Will Federal Reserve stop increasing interest rates in September, & will Bitcoin prices go up as a result?

Federal Open Market Committee (FOMC) is expected to stop raising interest rates in September, according to Goldman Sachs analysts. After that, interest rates may decrease, which could be beneficial for stocks, Bitcoin & other cryptocurrencies.

stock market & cryptocurrency markets have had a strong recovery in 2023.

Nasdaq Composite (INDEXNASDAQ: IXIC), which is heavily focused on technology, has increased by 31% while Bitcoin (BTC) is up 77%.

Analysts at Goldman Sachs anticipate that Federal Reserve will begin lowering interest rates in June 2024, followed by additional reductions on a quarterly basis.

Goldman economists Jan Hatzius & David Merkel have reduced their forecasts due to need to bring money rate back to a more normal level when inflation reaches its target.

Federal Open Market Committee is expected to decide not to raise prices next month. It is likely that committee will agree that prices have risen slowly enough so that an increase in rates is not necessary.

Goldman Sachs' team predicts that rate cuts will probably start around mid-2024 by time of November meeting.

Goldman Sachs analysts have stated that there is not a major reason to downgrade Federal Open Market Committee (FOMC) at this time. They are expecting FOMC to cut interest rates by 25 basis points each quarter, but they cannot be certain of how quickly it will happen.

Bitcoin prices have been around $29,000 for last few weeks without making much progress.

However, more & more Bitcoin whales & retail merchants are using network which could lead to an increase in prices after September.

Bitcoin's support level at $29,200 is still holding strong. There has not been any change in its technical status.

As of now, Bitcoin is fluctuating without a specific direction as it struggles to reach above $29,600 on four-hour time frame.

If Bitcoin surpasses $29,600 mark & continues to rise, it could reach $30,200. If it breaks through that resistance level, then it may go as high as $30,600 or even $31,000.