Crypto trader states that Bitcoin’s price consolidation signals a big move, but it is unclear in which direction this move will be.

Two speculative events could turn the tables. One of these is the possibility of the US Federal Reserve (Fed) making further interest rate cuts, and the other is the possibility of the US government selling more seized Silk Road Bitcoin.

“Bitcoin is very stuck again after trading at this same price level for the last few days,” anonymous crypto trader Daan Crypto Trades noted in an Oct. Daan Crypto Trades stated that Bitcoin’s “next move will be big.”

He suggested that the direction is uncertain and could change in either direction.

“In times like these, your best chance is to wait for confirmation,” he said, recommending that traders be cautious about accumulating or selling Bitcoin before the price chart gives strong signals.

Meanwhile, market participants expect the US Federal Reserve to continue interest rate cuts following the 50 basis point cut on September 18. Further interest rate cuts are generally viewed as a positive for cryptoassets as safer investments such as term deposits become less attractive to investors.

HSBC expects a 25 basis point cut in November and further 25 basis point cuts in December, January, March, May and June. Thus, six consecutive 25 basis point interest rate cuts are envisaged.

While market commentators viewed the Fed’s rate cuts as positive for risky assets like crypto, they also expressed concern about the potential impact on USD holders.

“The Fed started to cut interest rates. What does this mean? Financial authorities have determined who will pay for their mistakes: those who hold US dollars,” Strike CEO Jack Mallers wrote in an Oct. 2 X post.

Additionally, Marketwise founder Porter Stansberry also issued the following warning:

“Most Americans don’t understand what’s going on: They’ve never seen the Fed rate cuts lead to HIGH inflation and interest rates. And they will be destroyed.”

Finally, there are concerns that the U.S. government may sell large amounts of seized Bitcoin following a recent court decision not to discuss ownership claims over Bitcoin by a private entity. On October 8, the US Supreme Court rejected a case regarding the ownership of 69,370 Bitcoins that the government seized from the dark web market Silk Road. These Bitcoins are worth $4.38 billion.

Battle Born Investments requested a review, arguing that it acquired its rights to the seized Bitcoin through a bankruptcy estate.

Ryan Lee, chief analyst at Bitget, thinks the massive sell-off will have short-term and long-term effects on the Bitcoin price. In the short term, Lee expects “increased market volatility”; This is often seen during major Bitcoin sales or releases.

“Market sentiment may be adversely affected by a sudden increase in supply; This could lead to a sell-off and a temporary drop in Bitcoin price,” Lee explained.

Lee also believes that if Bitcoin is sold on the open market, it could put “downward pressure” on prices.