Bitcoin confronts short-term pressure as fading expectations for U.S. Federal Reserve rate cuts create market headwinds, with resistance forming near the $115,000-$118,000 price range. This follows a drop in September rate cut probability from 63% to 43%, cooling bullish momentum in the cryptocurrency market.
Recent trading sessions saw Bitcoin briefly plunge to $115,700 after the Fed’s cautious policy stance announcement, though it quickly rebounded to $118,500. Altcoin performance trailed Bitcoin during this period, exhibiting weaker recovery signals amid ongoing market uncertainty.
Despite immediate resistance, analysts highlight Bitcoin’s capacity for resurgence should the Federal Reserve shift toward accommodative policy. Historical parallels suggest a pivot like late 2023’s could reignite upward trajectories, though timing remains unclear. This view is bolstered by Bitcoin’s unprecedented $1.4 trillion in unrealized profits and pent-up potential for rally acceleration should quantitative easing resume.
Market ambiguity persists under Fed Chair Jerome Powell’s ‘wait and see’ approach, yet historical patterns indicate future bullish possibilities for Bitcoin if increased dollar liquidity emerges. Observers continue monitoring Fed signals for catalysts that might ease current price constraints.