A crypto analyst suggests that the recent interest rate cut by the United States Federal Reserve had already been anticipated by the crypto market. This indicates that it may be a good time to consider selling opportunities. According to Aurelie Barthere, a principal research analyst at blockchain analytics firm Nansen, keeping some crypto allocation makes sense as the Fed’s decision has boosted the bull market. However, Barthere advises trimming crypto allocation on rallies due to the potential downside risk.
After the rate cut announcement, the sentiment in the crypto market quickly turned positive. The Crypto Fear and Greed Index, which measures market sentiment, increased by 14 points to a “Greed” score of 59. This was a significant change from the “Fear” zone where it was at 45 before the rate cut.
Bitcoin’s price reacted positively to the announcement. It surpassed $60,000 for the first time since August 30 and came close to retesting $65,000 multiple times in the following week. Currently, Bitcoin is trading at $63,759.
The rate cut by the Fed is the first since March 2020, when rates were reduced in response to the COVID-19 outbreak. Before the announcement, Arthur Hayes, co-founder of BitMEX, predicted that the rate cut would lead to a market drop due to the narrowing interest rate differential between the US dollar and the Japanese yen.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.