Mon Sep 23 15:14:08 UTC 2024: ## Bitcoin poised for a parabolic rise as Fed cuts interest rates

**New York, NY** – Bitcoin (BTC) has surged by 6% since the Federal Reserve cut interest rates by 50 basis points, sparking optimism amongst traders that a parabolic upward movement is imminent.

Renowned trader Rekt Capital believes this marks the beginning of a “transitional phase” for Bitcoin, highlighting that historically, the cryptocurrency typically exhibits significant price action around 161 days after a halving event. The period between the halving and the expected bullish movement is termed the “re-accumulation range” by Rekt Capital.

If history repeats itself, BTC should break out of this range in the coming days, with the trader particularly bullish after BTC reclaimed its re-accumulation range. However, the current bull cycle differs from previous ones, as Bitcoin reached a new all-time high before the halving, potentially accelerating the cycle.

While this acceleration was initially positive, it also led to corrections and consolidation periods, which, according to Rekt Capital, have helped to slow the cycle down and make it more similar to previous ones. Nevertheless, the acceleration rate remains ahead of schedule by approximately 70 days, making it unclear whether a further correction is needed before the upward movement begins.

Despite September’s reputation as a bad month for risk assets, Tom Dunleavy, partner at MV Capital, believes that macroeconomic conditions are favorable for risk assets, particularly with the Fed having cut rates 12 times while the S&P 500 remains close to an all-time high.

Furthermore, Bitcoin’s correlation with the US stock market is currently at a near all-time high, as reported by Bloomberg. Dunleavy emphasizes the unprecedented growth projections for the market over the next year, further indicating positive sentiment.

Seasonality also points to potential rallies in October and December, adding to the optimistic outlook for Bitcoin. While uncertainty remains regarding the timing of the next upward movement, the recent Fed action and positive macroeconomic conditions are fueling speculation that a parabolic rise may be on the horizon.

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