The Fed is expected to deliver the last rate cut of the year and set the tone for 2026.Bitcoin is heading to over $200,000 within a year, analyst says.<\/p>\n
Today\u2019s Federal Reserve meeting will set the stage for Bitcoin to rally into the new year, according to analysts. <\/p>\n
Their bullishness hinges on the expectation that Fed Chair Jerome Powell will deliver a 0.25% interest rate cut and provide crypto traders with a much needed breather.<\/p>\n
The CME FedWatch tool shows<\/a> an 88% probability of a quarter-point cut today, with Polymarket bettors even more confident<\/a> at 96%.<\/p>\n \u201cI expect the digital asset space to react positively,\u201d Andrew Forson, president of crypto firm DeFi Technologies, told DL News.<\/p>\n \u201cAny rate cut reduces the riskiness of digital assets in relation to US Treasuries,\u201d Forson said. \u201cThe returns digital assets need to generate in order to be considered healthy or strong are moderated by any rate cut.\u201d<\/p>\n Bitcoin price over the past year<\/p>\n While there is dissent within the Fed, with some policymakers fearing inflation, Powell is seen to successfully push through the last rate cut of the year. <\/p>\n Several top Fed officials, including Governor Christopher Waller, New York Fed President John Williams, and San Francisco Fed President Mary Daly, have all hinted in recent weeks that policy easing is coming.<\/p>\n Lower interest rates are usually good for risk-on assets like crypto or tech stocks because they disincentivise investment in safe-haven bonds by reducing yields.<\/p>\n \u2018Reversal point\u2019<\/p>\n The Fed\u2019s Open Market Committee meeting lands as the cryptocurrency market sits $1 trillion below its all-time high set in October. Traders have already \u201cpriced in\u201d the event, analysts told<\/a> DL News.<\/p>\n Bitcoin\u2019s price is hovering above $92,000 after rallying 12% from its November lows. <\/p>\n Bitcoin exchange-traded funds saw $152 million in inflows on Tuesday, DefiLlama data shows<\/a>.<\/p>\n Broader markets are sideways. US stocks wavered on Tuesday as traders avoided big moves ahead of the decision, Bloomberg data shows<\/a>. <\/p>\n Nvidia was flat even after President Donald Trump approved the company\u2019s return to China with a 25% surcharge on its H200 chip exports.<\/p>\n \u201cThe market may be approaching a reversal point,\u201d Mark Pilipczuk, research analyst at CF Benchmarks, told DL News. He highlighted a \u201cvolatility spike\u201d signal in Bitcoin which has \u201chistorically marked exhaustion in market drawdowns.\u201d<\/p>\n \u201cShort-term performance after this signal is generally bullish,\u201d Pilipczuk said, citing historic return patterns that suggest Bitcoin will be trading above $100,000 going into the next year.<\/p>\n \u201cOver longer time frames, the pattern turns more decisively bullish,\u201d he said. \u201cEvery historical 12-month outcome has been positive, with gains around +140%,\u201d he said. That means $220,000 per Bitcoin. <\/p>\n