⚡ Big Volatility During the Rate-Cut Cycle: Will Bitcoin Rise First and Then Fall?
The Federal Reserve’s latest rate-cut cycle has injected fresh volatility into global markets, and crypto is no exception. Historically, lower interest rates fuel risk-on appetite, often sparking a short-term rally in Bitcoin (BTC) and major altcoins as liquidity flows back into high-beta assets.
But analysts warn of a possible “bull trap” scenario — BTC $BTC
could see a sharp breakout toward resistance near $120,000, only to retrace if inflation fears or weak macro data return. This pattern echoes prior cycles, where crypto rallied on initial cuts but cooled as economic uncertainty deepened.
Altcoins may experience amplified swings, with Ethereum (ETH) $ETH
poised for sharp moves if BTC dominance fluctuates. Traders should prepare for both upside euphoria and sudden corrections.
Will Bitcoin be the first to rise… and the first to fall?
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