Key Takeaways
How is BTC reacting to the Fed’s rate cut?
Bitcoin is grinding +0.72%, range-bound, with flows measured and a potential long squeeze in play.
What’s setting up Bitcoin for year-end?
Dovish Fed signals, seasonal tailwinds, and aligned macro flows keep BTC primed for a potential ATH.
No parabolic moves, just Bitcoin [BTC] grinding +0.72% intraday as the FOMC delivers its first 25 bps cut of 2025. The tape is cautious, with range-bound action signaling traders are sitting tight.
What’s the takeaway?
Market participants are still sizing up Q4, with Fed Chair Powell’s mixed signals on future rate cuts keeping flows measured, as Matt Mena, Crypto Research Strategist at 21Shares, told AMBCrypto.
He added,
Fed’s dot plot shapes BTC’s long-term positioning
Bitcoin traders are leaning on the Fed’s dot plot to size up positioning.
According to the latest projections, the Fed is signaling two more 25bps cuts by year-end, pushing the target range down to 3.50%–3.75% from 4.00%–4.25%. In short, Bitcoin’s long-term positioning remains dovish.
Powell’s inflation caution capped the short-term squeeze, keeping the tape range-bound. Yet the dot plot shows most Fed officials leaning toward two more cuts, keeping BTC positioned to grind toward new highs by year-end.
Source: https://ambcrypto.com/feds-25bps-cut-sparks-bitcoin-repricing-october-breakout-ahead/
