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  • The Fed is expected to cut interest rates twice in 2025, what might this mean for the Bitcoin price?

    The Fed is expected to cut interest rates twice in 2025, what might this mean for the Bitcoin price?

    The cryptocurrency market has gone mainstream. It is no longer retail investors’ assets as institutions globally are investing in Bitcoin and other major cryptocurrencies. 

    As a risk-based asset, Bitcoin’s price is affected by central bank policies, especially those from the United States Federal Reserve.

    Bitcoin’s rally in 2024 and connections with rate cut

    The cryptocurrency market was bullish in 2024, with the Bitcoin price surging by over 100%. The rally allowed Bitcoin to rally to an all-time high above $100k. A key catalyst to Bitcoin’s surge last year was the multiple rate cuts by the Federal Reserve.

    In 2024, the Fed cut rates three times, bringing it down to the target range of 4.25%-4.50%. Before then, the rate had been on a lofty plateau of 5.25%-5.50% since July 2023.

    The reduced interest rates affected Bitcoin’s price, allowing it to hit the $100k mark for the first time in its history. When interest rates are high, the cost of borrowing money is high. Higher interest rates decrease the liquidity in financial markets, providing more capital for less risky investments like bonds.

    However, lower interest rates increase the liquidity in financial markets, with investors opting to push money into riskier assets like Bitcoin. 

    Fed kept interest rates steady in January

    Bitcoin reached an all-time high price of $109,410 on January 20 as the market reacted to Trump assuming office. However, it has since lost 11% of its value and now trades just above $97k.

    A key factor in the poor market performance in the past few weeks was the Fed’s decision to hold interest rates steady. On January 29th, the Fed announced that the borrowing rate remained between 4.25% and 4.5%.

    Leaving the rate unchanged affected Bitcoin’s price as it has failed to rally to a new all-time high. It has also struggled to stay above $100k since the start of February. 

    Fed to cut interest rate twice in 2025

    The first FOMC meeting of 2025 saw the Fed leave the interest rate unchanged. The United States Fed is expected to cut rates twice before the end of the year. However, this decision will be affected by inflation levels.

    If the inflation levels rise sharply, the Fed will increase interest rates to curb the rising inflation. However, if inflation levels decline, the Fed will cut interest rates to stimulate the economy. 

    The CPI report earlier today, February 12th, revealed that inflation in the United States rose to 3%, its highest level since June 2024. The rising inflation could hamper possible interest rate cuts, with the news sending Bitcoin to the $94k level earlier today.

    Market analysts expect the Fed will lower rates twice this year, reaching 3.75%-4.00% by the end of 2025. However, the range of forecasts is wide, from a low of 3.00%-3.25% and a high of 4.50%-4.75%.

    Thanks to the expected rate cuts and other macroeconomic factors, analysts are optimistic Bitcoin’s price could reach a new all-time high. While predictions differ, most analysts are optimistic BTC’s price could hit between $150k-$200k before the end of the year.

    In addition to the expected lower interest rates, increased retail and institutional adoption could positively affect Bitcoin’s price in the coming months. Strategy (formerly MicroStrategy) continues to increase its exposure to Bitcoin while more companies are buying BlackRock’s spot Bitcoin ETF. 

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  • Bitcoin hits new ATH as Fed cuts interest rates by 25 bps

    Bitcoin hits new ATH as Fed cuts interest rates by 25 bps

    • Bitcoin spiked to a new all-time high above $76,600 on Thursday amid bullish sentiment around Donald Trump’s election victory.
    • The Federal Reserve’s decision to cut interest rates by 25 basis points and indicate further tightening also buoyed markets.
    • Analysts say the influx of ‘cheap capital’ could strengthen the bull market.

    Bitcoin rose for the third day in a row to hit a new all-time high above $76,000.

    Per data from CoinGecko, the flagship cryptocurrency touched highs of $76,677 across major exchanges on Nov. 7. This comes after BTC broke to a new all-time high above $75k on Nov. 5 with news of Donald Trump winning the US presidential election.

    The top crypto also moved higher to break above $76k as Kamala Harris conceded defeat and as US president Joe Biden confirmed he’d hand over power to the incoming 47th president.

    On Nov. 7, Bitcoin price made a new all-time high above $76.6k as the Federal Reserve announced a 25 basis points interest rate cut. The news coming on the back of Trump’s win added to the positive buzz across the risk asset markets.

    Fed’s rate cut is the second one after the 50 bps cut in September. The move follows slowing inflation data and a cooler jobs market. The market is likely to rally higher given Fed’s rate cut and Chair Jerome Powell’s remarks. Is “cheap capital” set to enter the market? Investor and entrepreneur Anthony Pompliano thinks so.

    BTC led cryptocurrencies in a brief pump, with Ethereum, Solana and BNB recording some notable gains.

    ETH for instance crossed the $2,880 mark with an intraday surge from $2,717. SOL broke into the top four by market cap after surging to near $198, flipping BNB with its market cap above $92.8 billion.

    Meanwhile, BNB crossed $600 for the first time since late October as it hit highs above $610. The coin’s market cap as of writing was $87.3 billion.

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  • Bitcoin (BTC) price targets $63k as crypto market awakens after Fed rate cut

    Bitcoin (BTC) price targets $63k as crypto market awakens after Fed rate cut

    Bitcoin (BTC) price breaks above $62K as crypto market awakens after Fed rate cut
    • Bitcoin has broken past $62K post-Fed rate cut; next resistance at $63K.
    • Ethereum and Solana have also surged, reflecting a broader crypto market rally.
    • Caution remains due to economic uncertainties and potential regulatory issues.

    Bitcoin (BTC) price has surged past $62,000 following the US Federal Reserve’s decision to cut interest rates by 50 basis points.

    The move by the Fed, aimed at bolstering economic growth and mitigating recession risks, has ignited a rally across digital assets. The monetary policy adjustment has not only energized Bitcoin but also lifted a broad range of altcoins and risk assets.

    Next Bitcoin (BTC) price resistance level at $63k

    Currently trading around $62,096, Bitcoin’s price has demonstrated a solid 24-hour gain of 2.29% and a more impressive 7-day increase of 6.20%.

    Most notably, the price breach above the $62,000 mark represents a crucial psychological milestone for Bitcoin, following a period of consolidation near $60,000.

    Technical analysis highlights that Bitcoin’s next significant resistance level is positioned at $63,000, with the potential for further gains if this barrier is surpassed. The upper boundary of Bitcoin’s Bollinger Bands indicates heightened volatility, suggesting that while a short-term profit-taking phase may occur, the overall trend remains strongly bullish.

    Support is firmly established at around $60,100, acting as a critical floor that has been repeatedly tested and held firm.

    Investor sentiment towards Bitcoin is largely positive, with increased trading volumes reflecting growing institutional interest.

    As Bitcoin’s (BTC) price continues to climb, it benefits from a broader narrative of cryptocurrencies serving as a hedge against traditional market volatility and inflation fears, which have been exacerbated by the Fed’s dovish stance.

    Ethereum and Solana lead as altcoins mirror Bitcoin’s surge

    The rate cut by the US Federal Reserve has not only impacted Bitcoin price but has also spurred a broader rally in the cryptocurrency market, lifting major altcoins alongside Bitcoin (BTC).

    Ethereum (ETH), for instance, has surged past $2,400, marking a 24-hour increase of 4.94% and a 7-day rise of 2.97%. Ethereum’s price reached $2,430 before settling slightly, mirroring Bitcoin’s bullish trend. Technical indicators show Ethereum facing immediate resistance at $2,430, with potential for further gains if it breaks above this level.

    Solana (SOL) has also seen significant price movements, surging by 6.03% to reach $138.65. This gain underscores renewed confidence in Solana’s ecosystem and its applications in decentralized finance (DeFi) and NFTs.

    Other altcoins, such as Ripple (XRP) and Shiba Inu (SHIB), have also experienced notable increases, with XRP rising by 1.20% to $0.59 and SHIB climbing 7.85% to $0.00001427.

    Analysts remain cautious

    Despite the overall positive sentiment, market participants remain cautious. Mixed reactions and concerns about the sustainability of the rally are prevalent. Analysts suggest that while the rate cut has provided a significant short-term boost, the broader economic uncertainties and potential regulatory challenges could impact future performance.

    In particular, Presto Research notes that the market remains divided, highlighting the need for relief from growth concerns to maintain upward momentum.

    Amid the mixed market outlook, the coming months will be critical in determining whether the current Bitcoin (BTC) price rally can sustain momentum and push digital assets to new highs.

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  • Bitcoin price dips below $25k after Fed decision- what next?

    Bitcoin price dips below $25k after Fed decision- what next?

    • Bitcoin price fell below $25,000 after the Fed rate pause news.
    • An analyst points out that the decline saw bulls lose a 7-month trendline support and $20k-$22k could be next.
    • The main resistance zone is between $26k and $28.3k, which can be touched if BTC bounces back.

    Bitcoin price broke below the $25,000 level overnight Wednesday as bulls failed to hold a key support zone, with the new price weakness coming after the US Federal Reserve’s interest rate pause decision.

    Bitcoin had consolidated near $26k ahead of the Fed’s decision. However, as the markets reacted to the news, BTC dipped past $25,500, losing a major trendline that has acted as upside support for the past seven months.

    Analyst share short term Bitcoin price prediction

    Bitcoin’s decline below $25k now puts bulls at risk of further rot, a scenario that could crystalise if bears take control. In this case, downside pressure could allow sellers to target new lows.

    Crypto analyst Captain Faibik says:

    “$BTC Bulls have lost the 7-Month Major Trendline, Not a good Sign..!! Is it a TRAP or Bears are back in the Town? If it’s a trap and Bitcoin bounces back, reclaiming the 26.7k resistance, we could witness a Bullish Rally towards 31k. If Bears are back, Bitcoin may face more downward pressure, possibly testing the 20-22k area.”

    Bitcoin price chart shared by Captain Faibik on Twitter

    Another analyst, Ali, says BTC has its most important support area in the $22.7k-23.6k region. On the upside, the main resistance zone lies between $26k and 28.3k. This suggests a bounce could see Bitcoin reclaim this zone and possibly look to retest the $30k area.

    “Bitcoin sits on thin ice! Notice the most important support zone is between $22,785 and $23,595 where 1.34 million wallets hold 450,000 $BTC. On the flip side, #BTC faces stiff resistance between $26,000 and $28,250 where 5.18 million wallets bought 2.1 million BTC,” the analyst tweeted.

    While the sub-$25k level offers a buy the dip opportunity, crypto analyst Rekt Capital notes that the loss of $26,600 threatens turning it into stiff resistance. A rejection of this level after the Weekly Close below could mean “lower $20000s await.”

    Bitcoin traded at $24,878 early Thursday morning, about 4% down as altcoins mirrored the losses. The total crypto market cap was down 3.8%, with Ethereum trading at $1,674 and XRP at $0.47 – down 6% and 7.3% respectively at the time of writing.

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  • AltSignals (ASI) presale pace up as Fed hints at rate pause

    AltSignals (ASI) presale pace up as Fed hints at rate pause

    • AltSignals (ASI) token sale continues as crypto is poised to react higher.
    • This follows hints by the US Federal Reserve of pausing interest rate hikes.
    • ASI token could also benefit from expected explosion in interest around artificial intelligence (AI) projects.

    Artificial intelligence continues to make waves, with both consumers and businesses looking to tap into opportunities being presented by the technological leap. Airbnb CEO Brian Chesky said in an interview with CNBC on Thursday that AI could be bigger than the internet revolution.

    AltSignals, a trading signals platform looking to upgrade its algorithm by introducing an AI-powered layer, is among those attracting huge attention. The AltSignals presale is in progress, with the second stage nearly 70% sold out.

    Fed pause could see crypto prices react higher

    Bitcoin price currently hovers near $29,000 after investors reacted positively to the US Federal Reserve’s signal that it could pause its interest rate hike trajectory. 

    The Fed’s hint towards taking a more cautious approach came after it raised rates by another 25 basis points on Wednesday. The US central bank’s interest rate rose to the 5.00%-5.25% range after the latest hike. It comes amid fresh uncertainties amid bank failures, warnings about the US debt ceiling and the continuing issue of inflation. 

    Fed Chair Jerome Powell hinted to this in his speech, with the next FOMC meeting now of key interest to investors. With an end to the rate hike cycle likely coming, it could be time for markets to find new momentum, which we highlight here.

    The scenario in the crypto sector will likely be where interest in established assets like Bitcoin, Ethereum, Litecoin and others, spills into projects in categories such as layer 2s, GameFi, play-to-earn and artificial intelligence.

    Why would now be a good time to buy AltSignals?

    Investors are likely to continue seeing Bitcoin as a safe haven asset amid ongoing bank failures and economic woes that impact traditional assets. Crypto as a whole is also proving quite attractive as a way for people to diversify their portfolios.

    If the expected Bitcoin bull cycle sets in, soaring market could catapult ASI token higher – a scenario seen with other projects that launched during the last bull market. As crypto edges closer to the historically bullish period marked by BTC halving, taking positions with ASI at current presale prices could prove a great investment.

    Even if crypto fails to take on a new bull run going into its 2024 halving, the utility that ASI offers and the growing adoption of AI-powered tools in the trading market could be enough to propel AltSignals higher when it launches.  But as always, it is advisable to remember that investing comes with risks, which is true of crypto, including presales of new tokens.

    What’s unique about AltSignals?

    AltSignals launched in 2017, offering a trading signals and market alerts for cryptocurrencies, stocks and forex. Now the platform has planned an upgrade to its trading algorithm, with artificial intelligence, machine learning and natural language processing.

    The upgrade is set to launch later this quarter via an AI layer dubbed ActualizeAI, and will see traders benefit from 24/7 trading signals with improved accuracy and risk management. The system will be powered by the ASI token, a native token that will offer holders access to all trading signals on the new AI-powered system.

    Unlike many new projects, AltSignals (ASI) is a project that already boasts a growing community and ready market for its product. Trade calls can be traded on major exchanges and brokers, including those for all the top cryptocurrencies and major forex pairs.

    Taking a working product and bumping its capacity with new advanced capabilities is a strategy that could see AltSignals take huge strides as a leading trading signals provider – with traders able to benefit across both bear and bull markets.

    As for the ASI token, holding it will not only give the investor access to ActualizeAI, but also to a membership club, trading tournaments and an upcoming DAO. The AltSignals presale could therefore be an opportunity for interested investors to buy the tokens at potentially low prices.

    The AltSignals presale is expected to end in the next few weeks, with the token’s price set to increase from $0.015 to $0.02274. The ASI token is issued on the Ethereum network and will trade on exchanges such as Uniswap when it goes live.

    You can invest in AltSignals by buying the ASI token here.

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  • Bitcoin slides off Fed meeting before bouncing back, but what next?

    Bitcoin slides off Fed meeting before bouncing back, but what next?

    Key Takeaways

    • Federal Reserve hikes 25 bps, Bitcoin drops over 6%
    • Bounceback in prices follow, however, as market bets on rate cuts down the line
    • Bitcoin originally fell to $26,700 and is now back at $27,700
    • Tight monetary policy appears to be coming to a close, which is exactly what Bitcoin investors want to hear
    • The flipside is that Bitcoin’s reputation may have been tarnished by the chaos in the industry over the last year
    • Whether institutional money and Wall Street capital will trust crypto again remains to be seen

    As has been the case over the last year now, Bitcoin continues to oscillate wildly based off interest rate expectations. 

    The orange coin took a tumble Wednesday off the back of the latest FOMC meeting, as interest rates were hiked 25 bps despite some analysts calling for a pause following the banking turmoil of recent weeks. 

    Why did Bitcoin fall?

    Such has been the chaos in the banking markets, markets ahead of the meeting had priced in a genuine chance that rate hikes would be no more. 

    Silicon Valley Bank (SVB) triggered the crisis, which last week spread to Europe before the spectacular demise of Credit Suisse, the Swiss institution founded in 1856. 

    With deposits fleeing banks and markets reverberating, things were breaking – as they tend to do when rates are hiked hastily. And this past cycle has been the most rapid form of tightening in recent memory. 

    Bitcoin fell from $28,500 to $26,700 as the Fed announced a 25 bps hike, a fall of 6.3%. 

    However, Bitcoin has since bounced back somewhat, trading at $27,600. This came as the market began digesting the discourse from Fed chair Jerome Powell around the future path of interest rates. 

    While the hike did come yesterday, it feels increasingly certain that tight monetary policy is coming to a close. It is worth remembering that before SVB’s demise, this hike was virtually guaranteed to be 50 bps. 

    And looking out to rates by the end of July, the market is forecasting cuts rather than hikes. So while the 25 bps hike may have been hawkish, the language afterwards and conclusion coming out of the meeting was very much the opposite. 

    Will Bitcoin go up?

    The question on everybody’s lips within crypto is then what does this mean for Bitcoin’s price? As always, it’s a difficult question to answer, but the future undoubtedly looks brighter for the coin today than it did a few months ago, that is for certain. 

    Not only is further removed from the scandal of FTX and the wave of bankruptcies that followed the sordid collapse of the former tier-1 exchange, but the end appears nigh with regard to the tight monetary policy. 

    Bitcoin was launched in 2009 and hence had never experienced anything other than a raging bull market in the wider economy. The S&P 500 increased seven-fold from the nadir of the GFC to its peak – and Bitcoin, alongside tech stocks, rode the wave of low interest rates, warm money printer and an all-around perfect climate. 

    As inflation roared last year, however, this flipped entirely. With interest rates hiked aggressively, there was no way for Bitcoin to sustain its previous levels of buoyancy. Down it came, and down it came hard. 

    Finally, it appears that the harsh monetary policy which has dragged it through the gutter is nearing an end. And while this doesn’t guarantee anything, it certainly removes the shackles so that there is at least a possibility that it raises. 

    Has Bitcoin’s image been tarnished?

    The flip side of the argument is that the scale of the damage over the last year has been so substantial that Bitcoin’s long-term trajectory has been dampened, and it won’t be able to get on the same track. 

    Crypto winters have come and gone in the past, but this recent one coincided, like we said, with a rout in the wider economy for the first time ever. It also came while Bitcoin was a mainstream financial asset – something which wasn’t true in previous cycles. 

    Collapses like FTX, LUNA and Celsius not only pillaged capital out of the space, but embarrassed crypto on the big stage, as unfair as that is to the good players in the industry. Will institutional funds and trad-fi money be happy to trust crypto again?

    It’s an interesting debate, and only time will tell. 

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  • Bitcoin price prediction ahead of Fed decision, NFP data

    Bitcoin price prediction ahead of Fed decision, NFP data

    • Bitcoin price declined slightly on Monday after nearing the resistance at $24,000.

    • Macro factors will be the key drivers for Bitcoin and other asset prices.

    • Consumer confidence, Fed decision, and NFP data will be in focus.

    Bitcoin price pulled back slightly on Monday as investors started focusing on the key economic data from the US and the upcoming Fed decision. The BTC price was trading at $23,125, which was a few points below this year’s high of near $24,000.

    Fed decision and NFP data

    Macro data and events will be the key things that will drive the price of Bitcoin – and other assets this week. On Tuesday, the Conference Board will publish January’s consumer confidence data. This is an important figure that is watched closely by investors and policymakers because of the vital role that consumer spending plays in the economy. Economists expect that confidence continued rising in January as inflation eased.

    The US consumer confidence data will be followed by the first FOMC decision of the year. With inflation easing and stocks and crypto prices rising, analysts believe that the Fed will deliver the second consecutive 0.50% hike. It will be extremely hawkish in a bid to reduce the enthusiasm among investors and traders.

    In theory, an extremely hawkish tone will be bearish for the price of Bitcoin. Historically, crypto prices tend to rally in periods of easy money policies. However, in reality, there is a possibility that Bitcoin will rise even if the Fed sounds hawkish. That’s because investors may not believe the tone of the FOMC officials.

    The Fed will likely guide to two more 0.50% rate hikes followed by a pause on interest rates as it seeks to lower inflation.

    Finally, Bitcoin price will react to the latest non-farm payrolls (NFP) scheduled for Friday this week. These numbers will be important because they will guide the Fed in making its future decisions. Strong jobs numbers mean that the bank will continue sounding more hawkish in the coming meetings. 

    Bitcoin price prediction

    BTC/USD chart by TradingView

    The BTC price has been in a strong bullish trend in the past few weeks. It has formed an ascending channel shown in black. The coin has moved above all moving averages. Further, it has moved above the important support at $21,615, the highest point on January 18. 

    Therefore, there is a possibility that Bitcoin will pull back slightly ahead of the Fed decision and then rebound after the decision. As such, the coin could retest the support at $22,000 and then rise to $25,000.

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  • Bitcoin retreats below $18k as Fed raises interest rate to a 15-year high

    Bitcoin retreats below $18k as Fed raises interest rate to a 15-year high

    • Bitcoin has dropped below the $18k once again following its rally earlier this week.

    • The Federal Reserve raised interest rates by half a point a few hours ago.

    • The total crypto market cap continues to stay above $800 billion.

    Federal Reserve raises interest rate once again

    The Federal Reserve announced on Wednesday that it had raised its benchmark interest rate to the highest level in 15 years. Thus, indicating that the fight against inflation in the United States is not over. 

    The interest rate was increased by half a point, taking it to a targeted range between 4.25% and 4.5%. This latest cryptocurrency news put a halt to Bitcoin’s recent rally. The leading cryptocurrency is down by less than 1% in the last 24 hours and is now trading below $18k. At press time, the price of Bitcoin stands at $17,737. 

    The broader crypto market has also been underperforming, having lost more than 1% of its value in the last 24 hours. The total cryptocurrency market cap now stands at around $860 billion.

    Key levels to watch

    The BTC/USD 4-hour chart remains bullish despite Bitcoin underperforming over the past 24 hours. In the last seven days, BTC has added more than 5% to its value.

    The MACD line remains above the neutral zone, indicating that the bulls have not given up control of the Bitcoin market. The 14-day relative strength index of 54 also shows that Bitcoin has not yet entered the oversold region.

    If the bears gain bigger control, Bitcoin could decline below the $17,090 support level over the next few hours. However, the bulls still maintain a level of control, and BTC could recover from this slight dip. If that happens, BTC could be trading above $18k soon again.

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