Bitcoin Poised for Rally as Fed signals Dovish Turn
- Teh 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.
today’s Federal Reserve meeting will set the stage for Bitcoin to rally into the new year, according to analysts. It’s a pivotal moment for the crypto market.
their bullishness hinges on the expectation that Fed Chair Jerome Powell will deliver a 0.25% interest rate cut, giving crypto traders some much-needed relief. Lower rates generally mean more investment flows into riskier assets like Bitcoin.
The CME FedWatch tool shows an 88% probability of a quarter-point cut today. Polymarket bettors are even more confident, placing the odds at 96%.
“I expect the digital asset space to react positively,” Andrew Forson, president of crypto firm DeFi Technologies, told DL News.He understands the market dynamics well.
“Any rate cut reduces the riskiness of digital assets in relation to US Treasuries,” Forson said. “The returns digital assets need to generate to be considered healthy or strong are moderated by lower Treasury yields.” Essentially, Bitcoin becomes more attractive when traditional investments offer less return.