Cryptocurrency Analyst Compares 2024 to 1995 and Predicts Impending Bitcoin Bubble

The US Federal Reserve’s possible interest rate cut in September or November is not expected to cause a significant adjustment, according to analyst RamenPanda. In a lengthy article on June 27th, the analyst explained their thoughts on the matter. During the financial crisis, such as in 2008, the Fed would cut interest rates to protect the economy. However, in such cases, the market performed worse, with the stock market declining after the rate cut. It is certain that the Fed will cut interest rates in September or November. Many people are concerned that the US stock market and cryptocurrencies like Bitcoin will experience a significant decline, citing the precedent of 2008. That is why, simply put, there are two possibilities… – RamenPanda (@IamRamenPanda) June 27, 2024. Bitcoin thrives after interest rate cuts. There is another uncommon scenario where the Fed would cut interest rates when the economy is performing reasonably but the rates are too high. Currently, the rate stands at 5.25% to 5.5%, the same as last year. “This uncommon scenario is the main reason for the Fed’s interest rate cut this year.” This will lead to a prosperity similar to the one in 1995 when the Fed cut interest rates, triggering the dot-com bubble in the following years. He believes that this will result in significant investments in internet-related assets, similar to what is happening this year with cryptocurrencies and artificial intelligence-related assets. “I think 2024 is very similar to 1995, not 2008. So, buckle up, the artificial intelligence bubble and the Bitcoin bubble will be unleashed soon!” It is reported that the BTC market trend is related to US inflation data or Consumer Price Index (CPI) reports. These have a significant impact on the Fed’s policy and its decision to cut or maintain interest rates. Earlier this week, analyst Willy Woo stated that assets like gold, stocks, and Bitcoin are good ways to beat CPI and currency devaluation. The Fed likes to report CPI inflation to you (yellow line). What you really need to beat is CPI + currency devaluation (dual-line). It’s typically around 8%. Gold keeps you at par. The S&P 500 beats it by 3%. #Bitcoin beats it by 20%-70%. pic.twitter.com/4ToBbvgxZb – Willy Woo (@woonomic) June 24, 2024. Not so fast… However, there may be more short-term pain before any significant gains are made. According to Markus Thielen, the research director at 10x research, BTC may drop to $55,000 during this adjustment period. On June 28th, he said, “Weekly and monthly reversal indicators suggest a broader pullback.” BTC has fallen 19% from this week’s historical high, dropping below $60,000 this week. However, it has not reached the average level of the current cycle, which is around 22%, and it could drop to $57,500. If Thielen’s prediction comes true, the correction could be even greater, at 25%, or even larger at 32% if it falls to $50,000. #BTC The current Bitcoin pullback is very very close to the average correction we’ve seen throughout the cycle -22% $BTC #Crypto #Bitcoin pic.twitter.com/e63woBCPDh – Rekt Capital (@rektcapital) June 27, 2024.