FOMC Meeting: Will Rate Cuts Boost Bitcoin’s (BTC) Price?

• Bitcoin faces pressure below $102K, with analysts forecasting a drop under $100K.
• A rate cut by the US Federal Reserve could spark a Bitcoin rally and boost altcoins.
• Bitcoin’s future hinges on the FOMC meeting, which could define its next move.

Bitcoin is under pressure again as it struggles to hold above $102K amid more selling pressure. According to the analysts, if the market remains bearish, Bitcoin may possibly trade below $100,000. The FOMC meeting during the Trump administration has created uncertainty on the path of digital currency.

Fed’s Rate Cut Impact

In an X post on Wednesday, analyst Ali Marteniz provided an update and put the chances of the US Federal Reserve maintaining interest rates at 4.25-4.5%, at 99.5%. However, the analyst said the biggest market move could occur if the Fed cuts rates unexpectedly. This could be a positive for Bitcoin and altcoins. 

The analyst pointed to bearish signals on Bitcoin using the TD Sequential indicator but believes BTC can sit above $99,000. According to Ali, a change of track from the Fed could lead to a Bitcoin rally. Such a shift in the Fed’s stance could pave the way for Bitcoin to recover, potentially even reaching all-time highs.

Critical Moment for Bitcoin

The Federal Reserve began lowering interest rates in the second half of 2024, with the first and quite sharp 50BP cut in September. Consecutive rate cuts in November and December decreased rates to 4.50 %—4.75 %.

Related: Bitcoin’s (BTC) Next Move: Key Economic Events to Watch

If the Federal Reserve adopts a dovish stance, the perfect environment for Bitcoin to bounce back will be realized. A larger rate cut than anticipated may pave the way for a successful rebound in BTC and the rest of the cryptocurrency industry. As of press time, BTC is trading at $101,998, showing a 0.60% decline over the past day. The next several days are going to be very important in the further dynamics of the Bitcoin price, which may either start to go up or keep falling.

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