Bitcoin Surges as Market Holds Breath for Federal Reserve’s Next Move

Bitcoin's climbing trajectory has traders glued to screens—all eyes on Jerome Powell's next play.

The Fed's Shadow

Traditional finance holds its quarterly séance to decide monetary policy, while Bitcoin just keeps doing its thing—decentralized, unstoppable, and utterly indifferent to committee meetings.

No rate cuts? No problem. Crypto markets have long operated on a different clock, one that ticks to the rhythm of adoption, not adjustment.

So while Wall Street frets over basis points, Bitcoin’s busy rewriting the rules. Typical.

Interest Rate Cuts and Historical Market Impacts

Quinten examines a critical topic by analyzing market responses to past interest rate cuts. He notes that the Federal Reserve typically turns to rate reductions during crises, evident from the 2001 cuts triggered by the Dotcom Bubble, the 2008 reductions following the mortgage crisis, and the 2020 cuts amid the pandemic crash. This has cultivated a perception that rate cuts invariably lead to market downturns.

“What about this time? Stock markets are at all-time highs, Gold is breaking records, and Bitcoin$0.000061 nears its peak. This cut might act as jet fuel for booming markets; I’ve never been this optimistic.”

Conversely, Lark Davis predicts another bullish market trend, reinforcing his argument with supporting data.

“The FOMC meeting is happening today. Since 2020, except for the 2022 bear period, each September FOMC meeting has heralded a significant Bitcoin surge. This trend persists regardless of the Fed’s rate decisions. It’s more about seasonal patterns. BTC is set to rise in this period, with Uptober being undeniable!”

Bitcoin (BTC) Market Outlook

Focusing on liquidity clusters highlighted on DaanCrypto’s heatmap, the analysis reveals a notable lack of liquidity clusters NEAR the current price, except below $107,000. The last significant stop before that is around $112,000. Should BTC experience a drop of approximately $3,000 and lose support, panic selling might push it down to $107,000.

“For now, we’re awaiting the FOMC meeting, predicted to induce further volatility. Before defining a directional trend, we expect fluctuations to clear high-leverage positions on both sides. My view is straightforward. Above $112,000, the short-term outlook is positive. In a higher timeframe, the trend remains bullish, with higher prices anticipated by late 2025. What happens in the interim is less significant; I mostly aim to filter noise and focus on the next major move, regardless of when it occurs.”