The impact of the Federal Reserve's decisions on maintaining or reducing interest rates significantly influences the pricing of Gold and Bitcoin. While low-interest rates are generally favorable for Gold as they reduce the opportunity cost of holding the precious metal, Bitcoin's price reactions depend on various factors.
If the Fed's monetary policy responds proactively to economic concerns or recessions, it could drive Bitcoin prices higher. However, there are factors beyond interest rates to consider. A potential rebound is anticipated due to the Bitcoin halving event scheduled for April 2024. Additionally, the approval potential of a Bitcoin ETF just before the SEC's initial deadline on January 10 could act as a catalyst for Bitcoin. Recent reports of approved ETFs quickly boosting BTC by 10% support this notion.
This means that if the Fed chooses to maintain high-interest rates, it might exert downward pressure on Gold prices over time. However, Bitcoin could still sustain its upward trajectory based on other catalysts.
According to Forbes' report, markets and policymakers anticipate that interest rates may only decrease by late 2024. Geopolitical situations and policies also influence the price fluctuations of both assets, making their relationship increasingly intricate. Nonetheless, based on predictions surrounding the Fed's policy decisions and catalysts like ETF approvals and the potential halving-induced price surge, Bitcoin might gradually begin to outperform Gold in the coming year.
If the Fed's monetary policy responds proactively to economic concerns or recessions, it could drive Bitcoin prices higher. However, there are factors beyond interest rates to consider. A potential rebound is anticipated due to the Bitcoin halving event scheduled for April 2024. Additionally, the approval potential of a Bitcoin ETF just before the SEC's initial deadline on January 10 could act as a catalyst for Bitcoin. Recent reports of approved ETFs quickly boosting BTC by 10% support this notion.
This means that if the Fed chooses to maintain high-interest rates, it might exert downward pressure on Gold prices over time. However, Bitcoin could still sustain its upward trajectory based on other catalysts.
According to Forbes' report, markets and policymakers anticipate that interest rates may only decrease by late 2024. Geopolitical situations and policies also influence the price fluctuations of both assets, making their relationship increasingly intricate. Nonetheless, based on predictions surrounding the Fed's policy decisions and catalysts like ETF approvals and the potential halving-induced price surge, Bitcoin might gradually begin to outperform Gold in the coming year.
