On February 1, the value of Bitcoin continued to experience downward pressure, following the decision by the U.S. Federal Reserve to maintain stable interest rates on January 31. The unexpected decline in the world’s highest-valued digital currency comes as a surprise. Current information indicates that experts anticipate a significant reduction of interest rates from their highest levels in several years by the central bank, a move that is expected to boost Bitcoin. However, in the short run, this situation is set to cause difficulties for Bitcoin. Alex Krueger, an economist and analyst specializing in cryptocurrency, expects that although Bitcoin values may experience some volatility in the near future, they are anticipated to rebound over a longer period when the Federal Reserve starts to decrease interest rates. Additionally, there is relevant content suggesting that a positive ‘Golden Cross’ technical formation appearing on the charts of alternative cryptocurrencies forecasts significant market activity. On February 1, during a discussion with X, the analyst contended that the Federal Reserve’s choice to maintain interest rates was a “hawkish” maneuver aimed at moderating the anticipations of the market. Krueger asserted that the Federal Reserve’s general approach remains lenient, predicting that reductions in interest rates will probably occur around May or June. Additionally, the analyst recognized that the market is presently overestimating the number of rate decreases expected for 2024. Despite the recent sharp decline, the analyst is of the opinion that Bitcoin values will probably undergo a swift correction before experiencing a significant rebound in the upcoming weeks and months. Krueger compared the present monetary policy stance of the Federal Reserve with the conditions experienced in 2022. The analyst observed that a common sentiment among cryptocurrency enthusiasts was that reductions in interest rates were excessively negative for Bitcoin. Alex Kruger provided data on the relationship between interest rate cuts and stock market results through a source identified as X. In an article posted on X, the economist aimed to challenge this misconception by clarifying that interest rate cuts are only detrimental in the context of a severe economic downturn. Numerous market analysts disagree, pointing to declining inflation figures as evidence. Data on inflation in the United States is provided by YCharts.