BTCUSDT on TradingView.com<\/a><\/figcaption><\/figure>\nAt the time of writing, the Bitcoin price stands at $101,180, down 2.2% over the past 24 hours.\u00a0<\/span><\/p>\nFeatured image from DALL-E, chart from TradingView.com<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"The Bitcoin price experienced a significant downturn on Wednesday, briefly falling below the $100,000 milestone as the US Federal Reserve’s (Fed) cautious outlook on interest rate cuts dampened crypto investments.\u00a0 At one point in Wednesday\u2019s trading session, the market\u2019s leading crypto dropped to $98,760 before recovering to the six-figure mark. Other cryptocurrencies, including Ethereum (ETH) and Dogecoin (DOGE), also faced substantial retraces.\u00a0 Fed’s Cautious Rate Cut Sparks Uncertainty In Markets The Federal Reserve’s decision to lower borrowing costs for the third consecutive time came with a tempered forecast for future reductions, particularly for 2025. Chair Jerome Powell emphasized that more progress is needed on inflation before the central bank can consider further easing of monetary policy.\u00a0 Tony Sycamore, a market analyst at IG Australia Pty, noted that the Fed’s decision was largely anticipated given recent trends in US inflation and economic activity.\u00a0 However, it acted as a catalyst for shedding some of the \u201cspeculative excess\u201d that had entered risk assets, including stocks and Bitcoin, especially following the recent US elections, according to Sycamore.\u00a0 Related Reading: Bitcoin Price Still Mirroring Bullish Move From 2023, What To Expect After Hitting $108,000 ATH Despite this dip, the Bitcoin price remains up approximately 50% since the US elections on November 5, largely due to President-elect Donald Trump’s commitment to deregulating the cryptocurrency sector while floating the idea of establishing a national stockpile of Bitcoin, further boosting market sentiment. Paul Veradittakit, managing partner at Pantera Capital, expressed optimism about the Bitcoin price future, stating, \u201cAll signs point to a good floor and outlook for Bitcoin,\u201d even as some traders took profits following the Fed meeting.\u00a0 Market dynamics shifted post-Fed meeting, with Sean McNulty, director of trading at liquidity provider Arbelos Markets, reporting an uptick in demand for options to hedge against potential Bitcoin declines.\u00a0 Zann Kwan, chief investment officer at Revo Digital Family Office, indicated that a temporary retreat into the low $90,000s for Bitcoin is possible. Bitcoin Price Eyes Key Resistance Level At $105,400 Crypto analyst Ali Martinez provided insights into market sentiment, emphasizing that current market behavior reflects expectations about future conditions rather than past events.\u00a0 The analyst noted that while the 25 basis point rate cut was largely anticipated, the Fed’s updated outlook for 2025 was not well received. Instead of three anticipated rate cuts in 2025, the Fed now projects only two, raising concerns about persistent inflation. Related Reading: Bitcoin Could Peak Between $160,000 And $290,000 If These Historical Patterns Repeat \u2013 Report Recent inflation data has also been disheartening, with core consumer price index (CPI) figures annualizing at 4% and core personal consumption expenditures (PCE) approaching 3.5%. Producer price index (PPI) figures are similarly trending upward, suggesting that inflation could remain an ongoing challenge. However, Martinez emphasizes that the real turning point came during Powell’s press conference when he described the decision as a “closer call,” indicating that not all Fed officials were in agreement about the cuts. This sent the US dollar soaring to levels not seen since 2022, which typically correlates with declines for BTC. Martinez also disclosed that the Bitcoin price had broken out of a head-and-shoulders pattern on Wednesday, which resulted in its drop just below $99,000, but emphasized that the cryptocurrency must surpass $105,400 to negate any bearish outlook. At the time of writing, the Bitcoin price stands at $101,180, down 2.2% over the past 24 hours.\u00a0 Featured image from DALL-E, chart from TradingView.com<\/p>\n","protected":false},"author":589,"featured_media":650794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,656,755,1119,1122,78790,6664,14690,1558,54512],"class_list":["post-664831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-technical-analysis","tag-btc","tag-btc-price","tag-btcusdt","tag-crypto","tag-crypto-news","tag-cryptocurrency","tag-defi"],"acf":[],"yoast_head":"\n
Interest Rate Cut Impact: Bitcoin Price Reaction Unraveled With Future Projections<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n