We asked ChatGPT if Bitcoin (BTC) could hit $100K if the US Fed cuts interest rates.

TL; DR

A potential interest rate cut by the US Federal Reserve could boost the crypto market, possibly pushing BTC to new all-time highs. Some experts argue that the positive effect of the effort may be temporary, that raising the scale may be more beneficial for the economy.

potential pole

The US Federal Reserve (Central Bank of the United States) is expected to decrease of Interest rates during the next FOMC meeting It has been scheduled September 18. Remember to wake up The measure will remain at current levels for 11 consecutive periods between March 2022 and July 2023. 5.25% -5.50%

This could happen. It has a great impact on Financial markets including the crypto sector. After all, the potential pole makes it cheaper to borrow moneyin turn, It could increase investors' interest in risky assets like cryptocurrencies.

The popular AI-powered chatbot – ChatGPT – also said that lowering interest rates in the US will encourage a bull run for digital assets, especially Bitcoin (BTC). In fact He estimated that the price of the main cryptocurrency could rise as high as $100,000 following the effort.

“Low interest rates often lead to an improvement in sentiment for risky assets like Bitcoin. If you are investors Expect easy financial conditionsthey There may be more interest in allocating capital to Bitcoin, which may increase its value.

But chatgpt warns that this result is not guaranteed and depends on other factors. He thought that one pillar of the Fed could weaken the US dollar, which in turn It could make BTC more attractive as an alternative store of value.

all in all Market conditions, regulatory developments, macroeconomic trends, and the level of institutional and retail demand also play a key role. Finally, a chatbot was added to the property ATH.

Only a short-term effect?

Other prominent industry participants, including BitMEX co-founder Arthur Hayes, believe a pivot from the Federal Reserve could benefit BTC and altcoins in the short term.

He Compared to Such action results in a strong (but short) energy boost provided by sweet foods. Moreover, he thinks that raising interest rates will be more beneficial to the economy:

Before the famine came, the feds had reached a peak in sugar levels. From an economic perspective, the Fed should. Grow, not cut.rates.