Bitcoin had been volatile, experiencing a downward trend that began in mid-March, drastically falling about 26%, before reversing the trend in early September. Despite the volatility and a downtrend, Bitcoin appears to be regaining momentum, gaining about 19% in September. The outlook for the digital currency remains encouraging for both the short and long term.

The long-term prospects for these assets remain bullish, driven by interest rate cuts from the Fed and a stable economic environment. For investors with a long-term horizon, increasing exposure to digital currencies now, when prices are comparatively low and expected to rise further, can be a smart strategy.

Fed Rate Cuts Fuel Growing Confidence in Digital Currency Market

The Fed cut interest rates by 50 bps in its September meeting, improving the outlook of the digital currency. The greenback's value tends to move inversely with interest rate adjustments by the Fed, resulting in decreased demand for the currency and creating opportunities in digital currencies. The U.S. Dollar Index (DXY) has been trending downward since mid-April 2024.

Investors may view Bitcoin as an alternative to the depreciating dollar. Moreover, any Fed rate cut would boost risk-on sentiments, which, in turn, would help Bitcoin prices. This supports the Bitcoin’s push into bullish territory.

There is a likelihood of 64.7% that the Fed might lower the rate to 4.5-4.75% and a 35.3% likelihood of the rates falling to 4.25-4.5% in November, according to the CME FedWatch Tool. The market has priced in a rate cut in December, too, with a probability of 48.8% of the interest rates falling to 4-4.25% and a 17.3% probability of interest rates falling to 3.75-4%.

Why Election Outcomes Might Not Rock the Bitcoin Boat

As the U.S. Presidential elections approach, rising market volatility may affect the crypto sector, though it remains relatively resilient compared to others.

Regardless of whether Trump or Harris wins, the outlook for cryptocurrency is positive, with both candidates likely to support favorable regulations. A Trump victory could lead to more lenient policies, while a Harris win is also expected to benefit the industry, creating a win-win situation for the crypto market.

According to a poll by Coinbase, as quoted on Yahoo Finance, crypto investors are showing equal support for Harris and Trump as they head into the 2024 presidential election.

Bullish Price Predictions for Bitcoin

Long-term forecasts for Bitcoin are highly optimistic, with expectations that the digital asset could surpass key psychological thresholds like $100,000 and even $500,000 by 2030-2035. The anticipated impact of three upcoming halving events by 2036 could further drive substantial gains in Bitcoin’s price.

Per Cointelegraph, as quoted on Yahoo Finance, Bitcoin may reach $75,000-$80,000 by the winter holidays. Options traders are increasingly optimistic about Bitcoin's future price movement, with many anticipating a potential surge of up to 75% during the holiday season.

Michaël van de Poppe, a renowned crypto market analyst, forecasts the digital currency to reach $90,000-$100,000 by the end of 2024, as quoted on TheStreet.

According to Zach Bradford, CleanSpark CEO, as quoted on Yahoo Finance, Bitcoin could soar to nearly $200,000 in the next 18 months, citing a rally after the November Presidential elections. This marks a 212% rise from the current price of the digital asset, making this projection overly optimistic and unlikely. However, it highlights the underlying bullish trends for Bitcoin.

A Stunning Week for the Crypto Market With $1.1 Billion Inflows

According to cointribune, U.S. base Bitcoin ETFs attracted over $1.1 billion in inflows in the last week of September, highlighting confidence of institutional investors and increasing impact of Bitcoin-backed financial products. These results indicate a positive outlook for the fourth quarter.

According to TheStreet, as “Uptober” draws near, analysts are adopting a more bullish outlook, anticipating that the token is set to reach new heights. This clever play in October highlights the optimism surrounding Bitcoin for the month and throughout the remainder of 2024.

ETFs to Consider

Below, we mention a few ETFs for investors to increase their portfolio’s exposure to Bitcoin and capitalize on its long-term bullish trend. The funds mentioned below have all gained about 19% since the first week of September (as of Sept. 30).

Investors can consider funds like iShares Bitcoin Trust ETF IBIT, Grayscale Bitcoin Trust GBTC, Fidelity Wise Origin Bitcoin Fund FBTC, ARK 21Shares Bitcoin ETF ARKB and Bitwise Bitcoin ETF Trust BITB.

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