In recent weeks, Bitcoin prices have become the center of attention for investors and market analysts worldwide. After consolidating below the $90,000 mark, focus now shifts to the upcoming Federal Reserve decision, particularly the possibility of an interest rate cut.
With market sentiment beginning to tilt towards optimism, many are wondering if this monetary policy move could spark a new uptrend in Bitcoin prices. Amid global economic uncertainties, the Fed’s potential dovish stance may act as a powerful catalyst to help Bitcoin regain positive momentum.
Bitcoin Prices Show Resilience Amid Market Movements
After a period of volatility, Bitcoin prices have been consolidating below the key resistance level of $90,000. The recent transfer of 1,083 BTC, valued at roughly $100 million, by SpaceX to new wallets sparked some concern initially. However, it appears this was a routine custody move rather than a sign of selling pressure.
Despite a dip to around $88,000 just before important inflation data releases and options expiry, Bitcoin prices have held steady, fluctuating within a narrow range. At the time of writing, Bitcoin is trading with a slight 0.15% gain over the past 24 hours but remains down about 2% over the last week.
Technical analysis points to a potentially positive development, Bitcoin seems to be breaking out of a long downward channel seen over recent weeks. This shift suggests that the worst of the recent sell-off may be behind us. Still, unless Bitcoin can close convincingly above $90,000, selling pressure may continue to apply short-term resistance.
Fed Rate Cut Expectations Boost Bitcoin Prices Outlook
Attention is now firmly fixed on the Federal Open Market Committee (FOMC) meeting scheduled for December 9-10. Traders and investors widely anticipate that the Fed will announce a 25 basis point cut to interest rates, signaling a dovish stance aimed at supporting economic growth.
On prediction markets such as Polymarket, the odds of a rate cut have surged to 92%, reflecting a significant shift in market sentiment. This news has reignited hopes among crypto traders that Bitcoin prices could embark on a new upward trend, reversing the cautious mood from earlier in the month.
Fed Chair Jerome Powell’s comments are being closely watched, as he is expected to endorse the rate cut despite internal divisions within the Fed. Some hawkish officials have expressed reluctance to continue cutting rates after consecutive reductions, especially given recent improvements in job data.
However, comments from New York Fed President John Williams in late November signaled that conditions justify easing in the near term, which has shifted expectations firmly towards another cut.
Also read: Bitcoin Price Today: BOJ Ready to Raise Interest Rates, Will Bitcoin Price Be Affected?
Analysts Predict Short-Term Volatility Before a Strong Rally
Market experts caution that while the outlook for Bitcoin prices is optimistic, some turbulence is expected around the time of the Fed meeting. Renowned analyst Michaël van de Poppe suggests that selling pressure may increase briefly in the days leading up to the announcement, possibly pushing prices down to $87,000 to clear liquidity levels.
This “shakeout” phase is often necessary to prepare the market for a stronger rally afterward. Indicators such as Bitcoin liveliness, a measure historically correlated with bull market phases, are showing upward momentum again, supporting the case for renewed strength in Bitcoin prices.
If Bitcoin manages to break above the $90,000 resistance, the next significant hurdle lies around $94,600. Surpassing this level would confirm bullish momentum and open the door for higher targets, including $108,000 and $116,000, which align with historical liquidity zones.
Also read: Bitcoin Price Today: Global Reserve Boom 2025, Countries Rush to Build Bitcoin Reserves
What This Means for Crypto Investors?
The current landscape presents a mix of caution and opportunity for crypto investors. While Bitcoin prices remain volatile in the short term, the growing likelihood of a Fed rate cut is fueling optimism about the cryptocurrency’s medium-term prospects.
Traders should prepare for potential short-term dips but also remain alert to signs that Bitcoin is gearing up for another leg higher. The weeks ahead will be critical in determining whether Bitcoin can break free from recent consolidation and reclaim its upward trajectory.
With the Fed’s policy decision imminent, all eyes are on how this major economic event will impact the prices and the broader crypto market in the near future.
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