Author: Timothy St. John

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%.

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The 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.  

Bitcoin is moving into a potentially very volatile stage ahead of the Federal reserve interest rate decision on Wednesday, and BTC has fallen 1.5% in the last 24 hours.

Investors should expect a very volatile Bitcoin right now as the Federal reserve interest rate meeting approaches. That meeting is scheduled to be held on Wednesday, and market sentiment is very strong in favor of a rate cut, which could propel Bitcoin much higher during.

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Even though BTC’s price is down right now from where it was the day before, the coin is in a strong position to climb much higher. Because the BTC price is above $90K and has stayed there for most of the week, investor confidence should be increasing. Investors may be ready to leap on what appears to be a rally for the crypto coin.

What to Expect as the Rate Decision Gets Closer

As we approach Wednesday’s Fed meeting, interest in stocks and crypto tokens is likely to escalate. We could see increased volatility as speculators anticipate a market surge.

At the time of writing, Bitcoin was climbing, having moved from $89,808 (BTC/USD) to $90,502 in a few hours. The coin is making upward progress, but it is slow and may not result in the kind of massive surge that some investors hope for.

Since early October, Bitcoin has been primarily bearish and has lost 27% of its value. That incredible loss has pushed numerous crypto whales and other smaller investors out of the market. Many of them have also traded in their bitcoins for other cryptocurrencies that are performing better, like Ethereum (ETH), XRP (XRP), and Tron (TRX). Several rival coins have done very well in recent weeks while Bitcoin has struggled to keep up investor confidence and maintain its gains.

We expect Bitcoin will climb this week but may fall after the rate cut decision. Investor anticipation should push the coin higher, but in the aftermath of the cut, investors may be disappointed at Bitcoin’s progress and may bail out once more. BTC’s price may rise as high as $95K this week but will likely retreat and end up just above $90K by the time the week is over.

Bitcoin finally climbed past $90K and is currently sitting at $91,010 (BTC/USD), but where does the cryptocurrency token go from here after weeks of bearish trends?

BTC moved as high as $94K this week and then backpedaled. The coin only briefly surged, but selling pressure was too high, and it is bearish once more. Should investors worry that Bitcoin may not reach a new high by the end of the year?

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There is one Bitcoin model that suggests the token should be close to $190K at this point in the year, but Bitcoin has been hit by hindering factors all year long, including high tariffs, Middle East conflict, a volatile stock market, and a lack of interest in cryptocurrency as a whole.

Bitcoin’s Investors Left in Droves in 2025

Why did so many Bitcoin account holders dump their coins this year? Many of them were whale investors who purchased their coins in 2025 but experienced extreme selling pressure and jumped ship. As Bitcoin struggled to maintain a high level, investors bailed, with numerous whales dumping their coins in November.

It appeared that investors were not willing to wait out the coin’s climb back up to tis October record high. Now, bitcoin faces incredible pressure from the bear market, as Bitcoin is underperforming compared to many of its rivals, like Ethereum (ETH) and Tron (TRX).

Bitcoin dipped to $83K at the start of the week, beginning December on a low note. Now that it has climbed above the $90K resistance level, however, its forward path has changed. There is room for the coin to make back some of its gains before the end of the year, but overall sentiment toward Bitcoin and the crypto market would have to change.

The market could be helped along over the next few days by Friday’s inflation data, the Federal Reserve policy decision on Wednesday, and the employment data late next week.  If these factors work in Bitcoin’s favor, we could see a surge to $100K, and a move above that level would signal improved investor sentiment.

But looking at Bitcoin’s recent performance, we are doubtful the coin can hit a new high by the end of the year. It may surpass the $100K level and sit just above there as 2026 rolls in. The coin has simply struggled too long below that critical level to inspire much confidence in a year-end surge.