Crypto investors are wondering whether the number one cryptocurrency is facing the risk of a downturn. Analysts at Bitfinex warn that Bitcoin’s uptrend may be interrupted if the Federal Reserve lowers its funds rate. Alas, a rate cut by the US central bank is bearish for Bitcoin.

Longest-running major crypto exchange Bitfinex underscored that September has traditionally been an unfavorable month for the first cryptocurrency. In this context, Bitfinex reminds crypto investors about a surge in the crypto market volatility.

Crypto traders should be braced for challenges. The Federal Reserve's decision on the interest rate is scheduled for September 18. While current market sentiment is optimistic, supported by Federal Reserve Chairman Jerome Powell's comments in August, the looming rate cut might cause Bitcoin's price to slump by 15%-20%, Bitfinex analysts say.

Investors typically consider risky assets, in particular Bitcoin, more attractive when interest rates are lowered. However, the first month of autumn may bring a surprise to the crypto market. Estimates suggest that Bitcoin's bottom could be between $40,000 and $50,000. Once the lower border is reached, the first cryptocurrency could resume a bullish trend, Bitfinex believes.

Thomas Lee, founder of the investment firm Fundstrat Global Advisors, also predicted that the crypto market would be very volatile in the coming months. However, it should not discourage investors from speculating, as they can employ a 'buy-the-dip' strategy, the analyst added.