Bitcoin Poised for Recovery as Fed Rate Cut Looms This Week, Says IG’s Chief Analyst

All eyes are on the Fed this week—and Bitcoin traders are leaning in.

The Rate Cut Catalyst

A potential shift in monetary policy is setting the stage. Analysts point to the upcoming Federal Reserve decision as the key trigger that could reverse recent crypto market pressure. Lower interest rates traditionally weaken the dollar and fuel appetite for alternative assets—a classic tailwind for digital gold.

Institutional Positioning

Market sentiment suggests institutions are already positioning for a pivot. Liquidity, which has been tightening, is expected to find fresh inflows if the central bank signals a more accommodative stance. It’s the old playbook: chase the liquidity, wherever it flows.

The Technical Backdrop

Beyond the macro call, chart patterns hint at a market coiled for a move. Key support levels have held amid the uncertainty, suggesting the sell-off was more about fearful speculation than a fundamental breakdown. Now, the setup favors the bulls—if the Fed delivers.

The Bottom Line

This isn't just about a single rate decision; it's about the narrative shift. A cut could validate the growing thesis that crypto assets are becoming a standard hedge in a world of unpredictable fiscal policy—proving once again that in finance, the most reliable catalyst is often the printing press.

Bitcoin and the broader crypto market continue to face a difficult stretch, yet IG's Chief Market Analyst Chris Beauchamp says a turnaround may already be forming. After months of selling pressure and fading confidence, Beauchamp expects a rebound to play out this week as traders position ahead of an almost certain Federal Reserve rate cut.

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