Sign Up on MEXC
Highlights
- Bitcoin price could correct toward $104K or $92K before reversal.
- Trump suggests deeper cuts of up to 100 bps to boost the economy.
- Fed’s rate cut expected, with 96.2% chance of a 25 bps move.
Bitcoin price remains in focus as investors weigh upcoming Federal Reserve decisions and market expectations. With the Fed expected to deliver a rate cut, scenarios of both short-term dips and longer-term gains are being discussed. JP Morgan and other big analysts are expecting a market dump before reversal, adding weight to near-term caution.
Bitcoin Price Action: Scenarios Shaping the Road Ahead
Bitcoin’s current market value sits at $115,527, reflecting modest daily gains. Scenario one suggests BTC price could retreat toward the $104,000 region before any meaningful reversal.
Such a move would test support while flushing out weak positions, creating space for a stronger recovery. Long-term projections, however, still point toward Bitcoin setting fresh all-time highs once consolidation clears.
Therefore, despite near-term risks, confidence in the broader bullish cycle remains intact. Investors will likely track how quickly BTC regains momentum after any corrective dip.
In scenario two, Bitcoin price could extend its decline further toward the $92,000 area. This level aligns with an unfilled CME gap, which often acts as a magnet in corrective cycles.
If this deeper retracement occurs, market sentiment may temporarily weaken before recovery unfolds. However, such a flush could also provide the base for the next major rally.
A rebound from that zone could drive BTC price well beyond prior peaks, supporting projections of a powerful leg higher. Therefore, BTC long-term price prediction remains bullish regardless of the depth of this correction.
Fed’s Rate Cut: The Market’s Turning Point
The Federal Reserve is widely expected to cut interest rates at its upcoming FOMC meeting, with probabilities heavily favoring a 25 basis point move. The U.S. President Donald Trump has called for even deeper cuts, suggesting 50 to 100 basis points to accelerate economic support.
Markets are split on the short-term effects, with some analysts projecting volatility before stability returns. Historically, rate cuts have injected liquidity into financial systems, which often benefits assets like Bitcoin.
Therefore, expectations are growing that a rate cut could fuel the next upward surge in BTC price. Analysts also caution that initial corrections may still occur before markets stabilize.
The CME FedWatch analytics reinforces this outlook, showing a 96.2% chance of a 25 bps cut and only a 3.8% chance of 50 bps. Consequently, whether the cut is modest or aggressive, the decision is viewed as a decisive pivot. This turning point will likely define how quickly Bitcoin transitions from correction to fresh highs.
To sum up, Bitcoin price faces a decisive period with two clear corrective scenarios before recovery. Whether the drop halts at $104,000 or extends to $92,000, long-term projections remain positive. The Fed’s upcoming decision adds urgency, as the scale of the cut could accelerate the next rally. Ultimately, both scenarios support a bullish future for BTC price despite short-term volatility.
Frequently Asked Questions (FAQs)
1. Why are analysts expecting a market dump before a reversal?
2. How does a Fed rate cut impact the crypto market?
3. What role does CME FedWatch data play in forecasting Fed decisions?
- Breaking: Circle Announces HYPE Investment and USDC Launch on Hyperliquid Ahead USDH Launch
- Coinbase Data Signals XRP Supply Shock Ahead- Analyst Claims $5 XRP Soon
- PUMP vs HYPE: PumpFun Daily Revenue Surges Past Hyperliquid, Analyst Projects New ATH
- Shiba Inu Update: Shytoshi Kusama Breaks Silence, Confirms “War Room” to Counter Shibarium Exploit
- Citigroup Predicts ETH Price Could Crash to $2,200 by Year-End
- Ethereum Price Prediction As Standard Chartered Says Treasury Buying Will Boost ETH Over Rivals
- Solana Price Prediction: Analyst eyes $1,250 as Galaxy Digital and Forward Industries Intensify Accumulation
- Trump Coin Price at Risk of a 16% Dive as Open Interest, Whale Selling Intensify
- Hype Price Prediction Gains Momentum — Is USHD Launch the Fuel for $72 Target?
- Bitcoin Price Prediction: Q4 Rally Looms as ETF Inflows Hit $642M—Analyst eyes $150K
