Despite expectations of a U.S. rate cut... "Bitcoin's upside limited"

With expectations that the U.S. benchmark interest rate will be cut in September, analysts said Bitcoin (BTC)'s upside could be limited.

On the 8th (local time), The Block reported that Rachel Lucas, a BTC Markets analyst, said, "Weak U.S. employment figures have greatly increased the likelihood of a Federal Reserve (Fed) rate cut," but added, "Bitcoin's price appears to have already priced in expectations of a rate cut." She added, "With institutional profit-taking and slowing inflows into spot Bitcoin exchange-traded funds (ETFs), Bitcoin's upward momentum is highly constrained."

Vincent Liu, chief investment officer (CIO) at Chronos Research, expressed a similar view. He said, "Even if the Fed cuts rates, further gains for Bitcoin will be difficult," and analyzed, "A rate cut is a signal that the economy is weak, which could greatly reduce Bitcoin investment sentiment." He went on to forecast, "Without strong spot ETF inflows, it will be difficult to surpass 120,000 dollars."

However, there is also a possibility of a new all-time high. Rachel Lucas said, "Bitcoin's main resistance levels are 113,400 dollars and 117,100 dollars," and added, "If those resistance levels are broken, there is a possibility of a new all-time high."

Meanwhile, according to the Chicago Mercantile Exchange (CME) FedWatch, the probability of a rate cut in September is 100%.