The Federal Open Market Committee (FOMC) is set to convene on July 31 to determine the Federal Reserve interest rate target, with analysts anticipating positive implications for risk assets such as cryptocurrencies and stocks like Bitcoin. At the time of writing, Bitcoin is trading at $67,500, with the total cryptocurrency market cap reaching $2.36 trillion.
Looking ahead to the FOMC meeting, advanced artificial intelligence models ChatGPT-4o and Claude 3.5 Sonnet have provided insights into potential Bitcoin price predictions. ChatGPT-4o envisions a bullish scenario where Bitcoin could surpass $75,000 by the end of 2024, propelling the cryptocurrency market cap to $2.8 trillion amid renewed investor confidence. Conversely, a bearish forecast suggests a pullback to around $60,000, contingent on any delay by the Fed in making expected rate cuts.
Anthropic’s Claude 3.5 Sonnet AI model echoes similar sentiments to ChatGPT-4o, forecasting Bitcoin to range between $75,000 and $80,000 in a bullish scenario, with a corresponding market cap of $2.8 to $3 trillion. In a bearish scenario, Claude AI anticipates Bitcoin trading between $60,000 and $65,000 within a market cap range of $2 to $2.2 trillion.
Following the July 31 meeting, the FOMC will convene on three subsequent occasions in September, November, and December to deliberate on U.S. interest rates, with a likelihood of further rate cuts. Market expectations suggest a 6% chance of a rate cut at the upcoming meeting, with a 100% probability of lower interest rates at subsequent meetings. Polymarket prediction markets indicate a 35% and 37% likelihood of the Fed reducing rates by 50 bps and 75 bps, respectively, in 2024.
It is crucial to note that markets typically price in expectations in advance, potentially affecting Bitcoin and cryptocurrency prices. While forecasts suggest a positive outlook for the market, any deviation from these predictions could result in significant fluctuations in asset prices. Investors should exercise caution and conduct thorough research before making any investment decisions. It is advisable to consult with a financial advisor to assess individual risk tolerance and investment goals.
