Analysts: Fed Rate Cut Euphoria Fit Spark Crypto Pullback
Analysts dey warn say di growing optimism wey dey about Fed rate cut don raise crypto prices but e fit backfire because historic patterns dey show say "buy di rumor, sell di news." Social chatter about “Fed,” “rate,” and “cut” don hit 11-month high, wey mean say people dey happy but e get higher risk for market pullback. On-chain data show say di BTC wey dey hold for exchange don rise by 70,000 coins since June, wey reverse di withdrawal trend and fit flood di market if people mind change. Daily active addresses and transaction volumes dey go down. Technically, Bitcoin wey dey trade near $117,000 dey face resistance for $120,000, with downside targets at $114,355, $108,200, and $103,800. Long-term MVRV for Bitcoin na +18.5%, while Ethereum’s short- and long-term MVRV wey be +15% and +58% mean say profit-taking risk dey. Funding rates dey show say people get long bias amid Fed rate cut speculation, wey show say current gains dey fragile. Traders suppose dey watch policy cues and carry out strict risk management.
Bearish
Di article get caution tone plus on-chain signs say crypto market fit drop. Di surge for social talk about Fed rate cut hope na just like before—dem January 2023 talk about Fed pivot wey make market sharp go up then quickly fall when no policy change happen. Big 70,000 BTC wey waka go exchange, activity dem dey go down plus high MVRV for Bitcoin plus Ethereum all show say profit taking risk high. For technical side, Bitcoin no fit collect back $120,000 area and some support wey dey come for $114,355, $108,200 and $103,800 mean say market fit lose ground. As funding rate still dey positive, if expectation for Fed rate cut change sudden, e fit cause sell-off. Make people dey careful for short-term risk plus position sizing, e dey show market fit weak soon.