Fed Rate Cuts Ignite $1.6B Bitcoin Buying; BTC to $70,000?

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Recent cuts to the Fed rate have increased Bitcoin investors’ optimism, with major holders acquiring up to 1.6 billion BTC after this macroeconomic decision. Given this optimistic forecast, there is a chance that the leading cryptocurrency may soon hit $70,000.

Fed Rate Cuts Trigger Buying Frenzy Among Bitcoin Whales

The recent Fed rate cuts have triggered a buying frenzy among Bitcoin whales. These investors acquired more than 1.6 billion dollars worth of Bitcoin following the macro announcement on September 18. Data from the market analysis platform IntoTheBlock indicates that these major holders have purchased 25,510 BTC since September 19.

This pattern of accumulation is expected, as the 50 basis points interest reduction has created a favorable environment for risk assets, including Bitcoin. The premier cryptocurrency is anticipated to witness a considerable price increase as more liquidity is introduced into its ecosystem, facilitated by investors having greater access to capital through the Federal Reserve’s quantitative easing (QE).

With Bitcoin poised for significant upward movements, a rise to $70,000 could occur quite soon. The flagship crypto has already reclaimed the $60,000 mark as a support level following the Fed’s rate cuts and is comfortably maintaining above it. As anticipated, additional liquidity is already permeating the BTC ecosystem, evidenced by the $1.6 billion acquisition by these whales.

Consequently, it should not take long before the cryptocurrency achieves the $70,000 milestone. Bitcoin hitting this target is crucial as it may set the stage for BTC to establish a new all-time high (ATH). The $70,000 price point has functioned as strong resistance since the cryptocurrency fell below this threshold after reaching its current ATH of $73,000 in March.

However, Bitcoin may well break through this resistance this time around, given the increased bullish momentum spurred by the Fed rate cuts.

Historical Patterns May Reemerge

Alongside the Fed rate cuts, Bitcoin’s historical trends paint a positive picture for the flagship cryptocurrency, indicating that an ascent to $70,000 is likely on the horizon. Crypto analyst Ali Martinez recently pointed out that Bitcoin experienced price surges of 61% and 171% in 2016 and 2020, respectively. These years coincided with halving events.

The analyst further disclosed that Bitcoin’s price movements this year are reminiscent of the years 2016 and 2020. Therefore, history could indeed repeat itself, allowing the flagship cryptocurrency to reap gains akin to previous years.

Additionally, the final quarter of each year has historically been the period in which Bitcoin achieves its highest returns. As such, BTC is expected to see considerable price increases as we approach the last quarter of this year. Meanwhile, the subsequent halving rally is approaching, which could further contribute to this price increase towards $70,000.

At the time of this writing, Bitcoin is trading around $63,900, reflecting an increase of over 1% in the past 24 hours, according to data from CoinMarketCap.