Bitcoin’s price volatility, alongside the Federal Reserve’s decision to cut interest rates by 50 basis points, has raised questions about the future of the cryptocurrency.

With many expecting a smaller cut, the larger reduction has led to speculation on its impact, particularly as the U.S. election draws near.

Roundtable anchor Rob Nelson discussed these developments with David Packham, CEO of Chintai, to explore what this means for bitcoin in both the short and long term.

"It's generally bullish for the economy," said David Packham. "We typically see a strong correlation between bitcoin's price movements and the general macro economy. This rate cut lowers borrowing costs, and its impact will be felt in three to six months. For businesses and consumers, it’s going to reduce the cost of loans and variable-rate debt, which is much needed after years of inflation."

Packham also commented on the political timing of the rate cut. "Some on the right are pointing fingers at the Fed, questioning their impartiality," he said. However, despite the controversy, he sees the decision as "a very positive series of policy changes for bitcoin for sure."

Bitcoin's price rallied about 6% higher to close out the week after the Fed made its rate decision final Wednesday.

Rob Nelson pressed Packham on whether bitcoin’s price would experience a significant jump in the coming weeks. Packham attributed the current range-bound price to election uncertainties. "One candidate is pro-crypto, while the other offers mixed signals. When prediction markets show a strong Kamala Harris lead, bitcoin tends to struggle. A Trump lead, however, often boosts bitcoin’s price," he explained.

Despite short-term fluctuations, Packham remains optimistic about bitcoin’s long-term outlook. "Bitcoin has a habit of surprising everyone," he said, adding that historical trends suggest a bullish movement next year, regardless of the election outcome.