Bitcoin Holds Above $110K Despite Fed Rate Cut: Technical Reset Signals Potential Rally to $150K
Bitcoin is trading above $110,000, dropping nearly 2% in the last 24 hours as the cryptocurrency processes the Federal Reserve's most recent
Quick overview
- Bitcoin is currently trading above $110,000, experiencing a nearly 2% drop in the last 24 hours as it reacts to the Federal Reserve's recent monetary policy decisions.
- Despite the recent price drop, technical indicators suggest that Bitcoin may be poised for a significant upward movement in the near future.
- Analysts believe that the current downturn in Bitcoin's price could present a strategic buying opportunity, as historical patterns indicate potential rallies following such declines.
- Institutional optimism remains high, with predictions of Bitcoin reaching $150,000 by the end of 2025, bolstered by favorable regulatory developments and potential resolutions in US-China trade tensions.
Bitcoin BTC/USD is trading above $110,000, dropping nearly 2% in the last 24 hours as the cryptocurrency processes the Federal Reserve’s most recent decisions about monetary policy and adapts to changes in the market. Even though the price dropped after Monday’s rise to $116,400, technical indicators and institutional sentiment imply that the leading digital asset may be getting ready for its next big upward run.
Fed Policy Fails to Provide Immediate Catalyst
After the Federal Reserve decided to decrease interest rates by 25 basis points and stop quantitative tightening on December 1, Bitcoin’s price movement has been strange. After the news, the cryptocurrency dropped to $109,200, which was a 6% drop from its recent high. This was despite the fact that 100% of analysts agreed that the rate cut was already priced in.
The Fed’s current dot plot shows that there will be three more rate cuts in 2025. Goldman Sachs analysts say that there will be at least two more 25 basis point cuts by June 2026, which would bring the benchmark rate down to between 3% and 3.25%. Traders, on the other hand, seem to be looking beyond monetary policy and are now paying heed to macroeconomic headwinds including growing unemployment, President Trump’s ongoing tariff talks with China, and worries about possible asset bubbles in the AI industry.
Hyblock, a crypto analytics company, said that recent FOMC meetings have always come before short-term decreases in the price of Bitcoin, followed by rallies. This suggests that the current downturn may be a good time for strategic investors to buy.
BTC Derivatives Market Shows Bullish Reset Pattern
The most interesting thing about Bitcoin’s recent price movements might be the big reset happening in futures markets. Analyst Luca says that even though Bitcoin’s price has gone down, funding rates have gone down and then back up again, which means that all of the overleveraged holdings have been flushed out. Open interest has gone up throughout this time, which is important since it means that bears are actively shorting instead of longs being liquidated.
This setup has traditionally come before big upward swings because too many short positions make it easy for short squeezes to happen. Daan Crypto Trades, another expert, reported that financing rates have decreased to levels not seen since July. This is a big decline compared to August and September, when Bitcoin was trading at similar prices.
CryptosRus pointed out that financing rates have gone from negative to positive starting October 22, which is similar to what happened in June and September before big price increases. The analyst says that when funding rates go up and prices stay the same, it’s frequently an indication of “the calm before the next big move.”
Bitcoin Price Prediction: Institutional Optimism Points to $150K Target
Michael Saylor, co-founder of Strategy (previously MicroStrategy), which is the world’s largest corporate Bitcoin holder, still thinks the price will go up, even though it has been very volatile lately. At the Money 20/20 conference, Saylor said that Bitcoin would reach $150,000 by the end of 2025, with clearer rules being one of the main reasons.
Saylor said that the SEC’s support for tokenized securities, Treasury Secretary Scott Bessent’s backing for stablecoins to keep the dollar strong, and the general shift in US regulations were all important factors that supported his prediction. He said that the last twelve months were “probably the best 12 months in the history of the industry.”
US-China Trade Deal Optimism Could Accelerate Recovery
The possible end of trade tensions between the US and China is another reason for the market to go up. After President Trump’s announcement of 100% more tariffs on China caused a historic market fall in October, both countries have toned down their language and promised to talk. Trump said he would meet with Chinese President Xi Jinping at the APEC conference in Seoul. Treasury Secretary Bessent said that a “substantial” trade accord framework has been achieved.
Investor Anthony Pompliano said that a formal announcement of a trade deal along with more cuts to the Fed’s interest rates might lead to a big rise in the market. He said, “Asset prices will get crazy this week.”
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