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Bitcoin Rally Trigger to $100,000? Goldman Sachs Envisions Fed Halting Interest Rate Hikes in September

John KumiBy 0Edited by John Kiguru 14. August 20233 Mins Read
Bitcoin
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  • Goldman Sachs predicts that the Federal Open Market Committee (FOMC) could stop its final interest rate hike. 
  • This could trigger more demand for risk-on assets such as stocks and cryptos to push prices upward. 

The US rising inflation and interest rate policy has been one of the most dominant determining factors on the Bitcoin (BTC) price in the past couple of years. According to data published by the Labour Department on August 10, the annual inflation rate for the 12 months ended July is 3.2 percent.

The next update on inflation in the US has been fixed on September 13. To control this rate, the Federal Reserve has in its 12 meetings increased the interest rate for the 11th time. Officials have disclosed that there would be one more interest rate hike this year. However, Goldman Sachs analysts believe that the Federal Open Market Committee (FOMC) would stop interest rate hikes in September. 

Analysts including Jan Hatzius and David Mericle stated:

The cuts in our forecast are driven by this desire to normalize the funds’ rate from a restrictive level once inflation is closer to target. 

Per their analysis, things could start getting better from June 2024 as the Federal Reserve stops interest rate hikes and starts quarterly reductions. The analysts believe that the FOMC would likely conclude in their next meeting that the final hike is not necessary since the inflation trend has slowed down. 

Normalization is not a particularly urgent motivation for cutting, and for that reason, we also see a significant risk that the FOMC will instead hold steady. We are penciling in 25 basis points of cuts per quarter but are uncertain about the pace.

Would Bitcoin be Impacted by the Interest Rate Decline?

This would be a piece of huge news for the equity, Bitcoin, and crypto market at large. Based on data, the equity, and the crypto market are bouncing back with some incredible growth. Nasdaq Composite has recorded a 31 percent surge. Bitcoin, on the other hand, has also made a 77 percent gain from the year to date. Interest rate hikes usually result in a sell-off of risk-on assets such as crypto. The opposite is also true. In this case, the Bitcoin price could take a huge jump to hit $100k when Goldman Sachs’ prediction materializes.

As of press time, Bitcoin had a bullish market sentiment and was trading at $29,404.87. The asset has surged by 1 percent in the last seven days and 8 percent in the last 90 days. Once it breaks into its $29,775.80 resistance level, there is a huge chance of hitting $30k. 

Another report has disclosed that both whales and retail addresses are accumulating digital assets. Crypto Analyst Ali Martinez has observed that there is a bullish divergence between the price and the network growth, and this signifies a sustained uptrend for Bitcoin. 

All major $BTC oscillators (MVRV, aSOPR, Puell Multiple, and Reserve Risk) continue to hover above the 0 line. This indicates the ongoing price correction might just be a blip.

According to him, it is important to buy the dip as the asset gathers momentum to target its all-time high price. 

 

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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