Despite Fed rate-cut outlook... experts say "Bitcoin's rebound has limits"

Even if the Federal Open Market Committee (FOMC) cuts rates at its meeting in September, there are views that upward pressure on Bitcoin (BTC) could be limited.

On the 8th (KST), The Block reported that Vincent Liu, Chief Investment Officer (CIO) at Chronos Research, said, "A rate cut could be a sign of economic slowdown," and forecasted, "Unless there is expanded inflow into exchange-traded funds (ETF) or increased liquidity, breaking through $120,000 may not be easy."

Rachel Lucas, a BTC market analyst, also analyzed, "Weak U.S. employment data raises expectations for the Fed's easing stance, but the market already seems to have priced this in to some extent," adding, "Profit-taking by institutional investors and weak ETF inflows are suppressing price increases."

Experts said that U.S. initial jobless claims, stablecoin issuance, exchange Bitcoin holdings, and ETF flows to be released after the FOMC are variables that will determine the market's future direction.

Meanwhile, it is becoming a foregone conclusion that the Fed will implement a rate cut at the FOMC meeting on Sept. 17 (local time). According to the Chicago Mercantile Exchange (CME) FedWatch tool, the probability of a 25bp cut by the Fed in September is 90%, and the probability of a 50bp cut is 10%.