Analysts Split on Bitcoin’s Reaction to Fed Rate Cut
Bitcoin is trading near $116,370, just below a key resistance level at $116,000, according to Bitfinex analysts, who noted in a Tuesday report that this level will likely hold “until decisively reclaimed.”
“BTC now trades at the upper edge of the range near $116,000,” Bitfinex wrote, adding that momentum has weakened since Bitcoin’s all-time high of $124,100 on August 14.
The recent price correction has pushed BTC below the cost basis of many recent buyers, particularly those who entered between $108,000 and $116,000.
Bitcoin’s slight rebound this week comes ahead of the U.S. Federal Reserve’s interest rate decision, expected Wednesday. According to the CME FedWatch Tool, there’s a 96.1% chance of a 25 basis point rate cut.
Market analysts remain divided on the impact of this decision. Tom Lee, co-founder of Fundstrat, believes a rate cut could trigger a major rally in Bitcoin and Ethereum, calling it a potential “monster move” over the next three months.
However, crypto analyst Ted warned on X that BTC could dip to $104,000 or even $92,000 before climbing to new highs.
Looking ahead, traders are also watching October 1, marking the start of Q4 2025—historically Bitcoin’s best-performing quarter, with an average return of 85.42% since 2013, according to CoinGlass.
