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The Federal Reserve announced a 25 BPS interest rate cut recently in what was the first of its kind since December 2024. The move was somewhat anticipated by the Bitcoin enthusiasts around the world, one of the major reasons why the rate cut failed to have a larger impact on the broader Bitcoin market.
At the time of the rate cut, BTC was trading between $115,000 - $116,000, and unlike previous rate cuts, the decision failed to take Bitcoin beyond the $117,000 level. While the price action in the recent past has largely been sideways, and the failure of the rate cut to influence the value, some analysts have revealed that they believe the coming months will also not witness any significant upward movement. However, that may not be the scenario given the uncertainty in the market.
Since the Fed rate cut was announced by Chair Jerome Powell, the market has not witnessed much volatility, and one of the reasons can be that the market has anticipated the move for a long time. However, Bitcoin’s long-term outlook following the rate cut remains a positive aspect for the market, signalling that liquidity is making a return.
As a result, the market has received a short-term boost, especially for Bitcoin’s role as a risk asset. The latest rate cut remains more pertinent because it is considered a highly positive factor for all risk assets, and its short-term boost could influence a bullish movement in the impending Q4.
The Federal Reserve has long been considered one of the most relevant factors behind Bitcoin’s price action. One of the reasons behind this is that Bitcoin remains highly connected with the global economies, and the Federal Reserve’s developments highly impact the global economies. This factor has helped the Fed rate cut to be treated as one of the most anticipatory signals in Bitcoin, despite the fact that VDAs were created to be decentralised, particularly from global organisation-based cues.
The latest Fed rate cut is of particular interest because it is the only one that has taken place in 2025, with the last one being done in December 2024. This also paves the way for further rate cuts in late 2025 and in 2026, offering a more supportive outlook for the asset in the coming months. While the market sentiment for the coming months remains improbable to predict as several macroeconomic factors would be at play, potential Fed rate cuts may cushion the market from unforeseen challenges.
However, with Fed chair Powell leaving his post for a new head in 2026, it remains to be seen how it would help the Bitcoin market in general. Despite this, analysts believe that adoption data would be more than sufficient to drive Bitcoin’s valuation towards a new bullish momentum in the months ahead.
As of now, no significant cues have appeared to suggest that Bitcoin is about to break its current resistance zone, as it continues a sideways movement. At the time of writing this article, it is trading at $116,400, down from $117,000 levels earlier. Historically, Bitcoin prices have witnessed a 5%-8% dip after Fed rate cut announcements, before resuming their upward momentum. This time,volatility and support backdrop, ETF demand, and institutional adoption will supplement the overall price action going forward.
It should also be considered that while the market anticipated the rate cut, it had hoped for at least 50 bps in total. The 25 bps cut may lead traders to lose general optimism, adopting a bearish stance. All these considered, the most stable outlook for Bitcoin in the near future could see it being valued somewhere between $123,000 - $150,000, but a true bullish momentum remains on the cards.
In late 2025, high beta assets like Bitcoin may again witness considerable investor confidence that may provide the necessary push towards making new all-time highs. At present, Bitcoin is moving near the key resistance points of $118,000 - $120,000, which could be broken, followed by a period of consolidation once again, with a price upside that may take it to the north of $135,000.
ETF inflows may become the catalyst of this movement, coupled with the upcoming Fed rate cuts that are planned for December. However, investors must complete their due diligence before making any decision, as volatility and macroeconomic factors would also play a significant role in its price action in the near future.
Authored by Roshan Aslam, Co-founder & CEO of GoSats
[Disclaimer: The views expressed are solely of the author and Analytics Insight does not necessarily subscribe to it. Analytics Insight shall not be responsible for any damage caused to any damage caused to any person/organization directly or indirectly.]
