Key facts: A perfect storm is brewing for the rise in the price of bitcoin. On September 18, the Fed could announce cuts in the dollar interest rates. “Don’t be whiners,” wrote trader and influencer David Battaglia on his X account. His exhortation was in relation to the price of bitcoin, which, as anyone who follows the market knows, is not going through a good moment. In the last week, BTC has approached $52,000. This is more than 20% below its all-time high reached in March 2024, of $74,000. But, for Battaglia, Bitcoin's bull cycle is not overThe trader says:
«Bitcoin is less than halfway through the cycle, according to the 2-year average, which seems to me to be one of the most reliable indicators for knowing where we are.» David Battaglia, trader and influencer.
The communicator accompanies his statement with the following graph that illustrates his analysis:
David Battaglia has bullish expectations for the price of bitcoin. Source: David Battaglia – X. Battaglia adds: “We only buy red candles; the green ones are for tourists.” By this he means that when the price of bitcoin fallsgiven the bullish expectations, can be considered a good entry point. Regarding the «low» prices that Bitcoin has been showing in recent days, the trader does not despair and encourages continuing with that attitude:
«Bitcoin is definitely teaching a lesson in patience to people who are just looking for quick profits. This market has evolved a lot since I started in it 8 years ago. It is safer to invest now than in those years.» David Battaglia, trader and influencer.
For this reason, Battaglia assures that September (which is historically a bad month for bitcoin, as BitcoinDynamic has shown) It is «the best month of the year»The investor adds that “The Fed is going to lower interest rates, the dollar is going to devalue and the debt will continue to grow” so “bitcoin at $180,000 is inevitable.”
Why do interest rate cuts benefit bitcoin?
When interest rates in the United States fall, a phenomenon is unleashed in the markets that pushes investors towards more volatile and potentially more profitable assets, such as bitcoin. Why? First, because Treasury bondsconsidered the safest assets, lose attractivenessThese financial instruments, which pay a fixed interest, are highly coveted in times of uncertainty, but when interest rates fall, their profitability decreases. Investors, then, look for other alternatives that offer greater profit potential, and that is where bitcoin comes in. To understand it better, let's imagine that Treasury bonds are like a savings account in a bank, with a fixed rate and no big surprises. If the bank lowers the interest rate, keeping your money there no longer seems so attractive, right? Investors think the same: if bonds don't give as much, it's time to take a little more risk. In this scenario, bitcoin, which although volatile has a history of offering significant returns in the long term, becomes an interesting destination for that capital. In addition, Low interest rates make it cheaper to borrow. If money is cheaper to obtain, businesses and investors can access low-cost credit to finance their operations or even to invest in assets that can give them a higher return. This includes bitcoin, as many large investors use leverage (borrowing money to invest) to enter the BTC market when conditions are favorable. On the other hand, the inverse relationship between the value of the dollar and bitcoin also comes into play. When the US Federal Reserve (the Fed) lowers interest rates, the value of the dollar tends to decrease. This happens because more money circulates in the economy, diluting its value. And since bitcoin is seen by many as a store of value, its appeal increases in times when the dollar loses purchasing power. It's as if every dollar you have in your pocket is worth a little less, but bitcoin, with its limited supply, becomes more valuable by contrast. So, this combination of cheap money, a weakening dollar, and the search for higher returns creates a A perfect storm for bitcoin price growthThe promise of an asset that not only retains value but can multiply its value in a matter of months is irresistible to those who see in bitcoin an opportunity to escape the limitations of traditional assets. That is why many specialists, such as Battaglia, are betting that current monetary policies will lead to a new bullish phase for bitcoin.