Bitcoin and Other Cryptocurrencies Expected to Grow This Month Due to Falling Interest Rates: Merkle Capital

Merkle Capital, a crypto investment advisory, expects rising Bitcoin prices and increased cryptocurrency investments this month because of the global trend of falling interest rates.

Crypto investment advisory Merkle Capital expects rising Bitcoin prices and increased cryptocurrency investments this month amid a global trend of falling interest rates.

According to Woramet Chansen, investment advisor at Merkle Capital, Bitcoin prices rose by over 25% in September after the US Federal Reserve cut interest rates for the first time in four years by 0.50 percentage points.

"That was a key turning point in the market cycle, which encouraged investors to take on more risk and presented an opportunity for long-term digital asset investment," he said.

"Even though the price of Bitcoin reached an all-time high, other cryptocurrencies have not been able to record the same remarkable peaks."

Mr Woramet expects Bitcoin and other cryptocurrencies, particularly Ethereum, to see significant growth this month based on the Fed's dot plot in September.

The dot plot indicated a total of 2.5 percentage points in interest rate cuts by the end of 2026, including last month's reduction, which would bring the fed funds rate target range down to 2.75-3.00% in 2026.

"This bodes well for risk assets based on fundamentals and statistics," he said.

Stablecoin supply, on the other hand, is at its highest in two years, highlighting the presence of cash in the crypto market.

"The rising value of stablecoin supply to an all-time high is a key indicator of investors' growing信心," said Mr Woramet.

The market capitalization of altcoins, excluding Bitcoin and Ethereum, has increased by over 25%, clearing a key technical resistance level over the past six months, according to the investment advisory. This indicates investor confidence in the crypto market, particularly the Ethereum ecosystem, which has driven gains in other currencies, he said.

According to Mana Khanijou, chief commercial officer at Merkle Capital, a potential risk factor is the worsening geopolitical landscape.

"If that happens, it could trigger panic selling in various assets, reversing the current economic recovery trend," said Mr Mana.

However, he anticipates positive short- to medium-term prospects for crypto investments.

Sukit Udomsirikul, managing director and head of research at InnovestX Securities, said that after passing the halving period, the Bitcoin price has been trading in a range of US$50,000-55,000.

This is a fair price based on demand and supply data, he said, but the weak US dollar and lower interest rates are factors supporting the Bitcoin price.

One factor to watch is the US presidential election in early November, said Mr Sukit.

"If Donald Trump wins, we have to watch for any policies to promote cryptocurrencies," he said.

Bitcoin and Ethereum are recognized as alternative assets for investors to buy through spot exchange-traded funds, said Mr Sukit.

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