The Dollar Slides 📉 – Fed’s Moves Push Bitcoin Higher 🚀

Novogratz says that the Fed's rate reduction might cause a disastrous shift in the balance between bitcoin and the US currency.

Rate cuts are good for Bitcoin but bad for the US dollar because they frighten off investors who want to put their money in high-risk, high-reward digital assets.

The latest FOMC meeting, which took place on September 17, had the opposite impact. The US dollar went up roughly 2 basis points in the week after that, whereas Bitcoin lost 5.4% between then and now.

Performance of the dollar vs. bitcoin chart after September 17

The meeting led to a 0.25% rate drop, which didn't appear to get investors more interested, but the future ones may. The Fed said there will be three additional cuts: two by the end of this year and one more in 2026.

The nearest one is set for October 28, and if we believe FedWatch's market sentiment, which says there's an 87.7% chance of a positive decision, it's practically certain to happen.

And this time we think Bitcoin will get back the ground it lost and reach a new all-time high. It's quite possible that the price will go up to $130K and higher after clearing $120K.

If Michael Saylor's Strategy chooses to purchase the drop, the real test will be in mid-October. This is quite plausible since Bitcoin is now in consolidation mode, hovering around the $109K mark for more than two days.

This suggests that the bear momentum is fading, which Strategy might use to raise its treasury to more than 640,000 $BTC.

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