Yahya 
A much-needed interest rate drop from the U.S. Federal Reserve this month may lead to an unexpected downturn for Bitcoin as analysts warn that the price may drop by as much as 20%. Unlike many market participants who have an optimistic outlook, Bitfinex experts sent a letter on September 2 estimating a price for Bitcoin between $40,000 and $50,000 should rates be dropped.
Based on September’s historical volatility of Bitcoin, a month usually distinguished by quite random price fluctuations for the currency, bitfinex experts created their projection. They also mentioned that the predicted rate drop would “add another layer of complexity, maybe aggravating the volatility of the market.” They did agree, however, that this perspective may shift with macroeconomic conditions.
While many investors see Bitcoin as a more enticing option when interest rates are lowered as traditional assets like bonds offer lower returns, the status of the current economy is still undetermined. Set for September 18, the Federal Reserve’s interest rate decision echoes dovish remarks by Fed Chair Jerome Powell in August implying that “the time has come” for rate decreases.
At the time of writing, Bitcoin is trading for $56.450 down 5.18% over the last week. A 20% decline from its current price would push it to around $46,000, the level last seen in February. Early August saw Head of Research at 10xResearch Markus Thielen echo this, stating Bitcoin “needs to fall into the low 40,000s” before a new bull market can commence.
Other onlookers, like as Joe Consorti of The Bitcoin Layer, think $60,000 is more likely a stabilization zone where long-term holders are purchasing Bitcoin than a speculative peak. Bitcoin is now “fighting around its Bull Market Support Band,” claims bitcoin trader Daan Crypto Trades, and for now it is hesitant to go further in either direction.
As the Federal Reserve’s ruling approaches, market participants are preparing for what may be a turning moment in the price route of Bitcoin.
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