Bitcoin Price Prediction after Fed Rate Cut
Cryptocurrency prices are down and Bitcoin is slipping after the newest Federal Reserve rate cut impacts the market.
Quick overview
- The Federal Reserve's final interest rate cut for 2025 has not positively impacted Bitcoin, which is down 2.08% to $90,096.
- Despite the stock market rising, the cryptocurrency market has dipped about 2.8%, with Ethereum and other major coins also experiencing losses.
- While the immediate reaction to the rate cut has been negative for crypto, there is potential for a future surge as the economy improves.
- Analysts suggest that Bitcoin could surpass $100K in the coming weeks, but a new record above $126K seems unlikely.
The Federal Reserve issued a final cut for interest rates for 2025, but Bitcoin (BTC) has not seemed to benefit from it as the coin is down 2.08% to $90,096 (BTC/USD).
Bitcoin has fallen more than 2% over the last 24 hours even as the stock market has risen, with the Dow Jones up more than 1% for the day. It appears that the new Fed cut has helped the stock market and done nothing for cryptocurrency. The wider market is down overall, with Ethereum (ETH) dipping 4% and both XRP and BNB dropping around 2.5%.
BTC/USDThe Fed cut the interest rate by 25 basis points, which is exactly what was expected and was in line with other cuts this year. There was some concern that they would fail to pass a rate cut because there had already been several in 2025, but the market was rewarded for its hopefulness with a new cut and increased numbers across the three major U.S. stock market indices.
Crypto Market Slides
The crypto currency market dipped about 2.8% on Thursday after analysts expected it to climb following the rate cut decision. But should investors anticipate a ripple effect to follow from the stock market gains after the cut?
We have already seen stocks tick upward as a result of the new rate cut, and over time, those gains could give the cryptocurrency market a boost, but investors should not hold their breath for that. What we have seen from the crypto market already- a quick drop off- could be the full impact of the rate cut on that market.
Through 2025, the Fed’s rate cuts have not done much to benefit the cryptocurrency market over the short term, but we could see some latent effects by the end of the year as investors benefit from the rate cut’s impact. If the economy improves as a result of the Fed’s decision, then the crypto market will see more investors and rising values.
We anticipate a surge by the end of the year, since that is typical for the crypto market, and that surge could be even bigger this year thanks to the Fed rate cut. How big that increase could be is hard to say, but Bitcoin could surpass $100K in the coming weeks. However, it is very unlikely that BTC will set a new record, which would have to be above $126K. In order to do that, Bitcoin would have to increase by more than 28%.
The crypto market’s initial reaction to the cut is negative, but that may change in a few days. As we start to see positive effects in the stock market and the economy, crypto investors may jump back in and feel like taking some risks with this volatile market.
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