Fed Rate Cut Looms: Bitcoin (BTC) Primed for $100,000 Rally

The Federal Reserve is sharpening its scissors, and Bitcoin traders are licking their lips. A pivot to lower interest rates could send the flagship cryptocurrency soaring toward a once-unthinkable target.

The Liquidity Liftoff

Cheap money is rocket fuel for risk assets. When the Fed cuts rates, capital floods out of safe havens in search of higher returns. Bitcoin, with its finite supply and global reach, stands as a prime beneficiary—a digital sponge ready to soak up the excess liquidity that traditional finance can't seem to manage properly.

From Macro Pressure to Crypto Ascent

The mechanism is straightforward: lower yields on bonds and savings make volatile, high-growth alternatives more attractive. Institutional portfolios, starved for yield, start allocating to digital gold. The narrative shifts from inflation hedge to mandatory asset—because in a world of engineered money, you either own the protocol or you're at its mercy.

The $100,000 Horizon

Hitting that six-figure price isn't just a milestone; it's a psychological breach of the old financial guard. It represents a fundamental re-rating of what store of value means in the 21st century. Every basis point cut from the Fed adds another brick to the path toward that summit.

So watch the Fed's hands, not its mouth. While pundits debate points and percentages, the smart money is already positioning for the tidal wave of capital seeking an exit from a system built on promises. Bitcoin doesn't just wait for a rate cut—it's built for the aftermath.

TLDR

• Bitcoin is holding at the 0.382 Fibonacci retracement zone, a critical support level that analysts say must be defended to prevent a drop to $76,000
• The Federal Reserve meeting on December 9-10 is expected to deliver a 25-basis-point rate cut with 92% probability according to Polymarket traders
• Bitcoin briefly fell below $88,000 over the weekend before recovering to $91,500 in what traders called a leverage liquidation event
• Technical analysis shows Bitcoin breaking out of a descending channel with resistance at $94,600 and potential upside targets of $108,000 to $116,000
• Fed Chair Jerome Powell is expected to proceed with the rate cut despite inflation concerns from several policymakers

Bitcoin is trading at a critical technical level that could determine its price direction in the coming weeks. crypto analyst Daan Crypto Trades identified the 0.382 Fibonacci retracement zone as a key area that bulls must defend.

$BTC Still holding on to that .382 area from the entire bull market so far.

I think this is a key area for the bulls to defend. It's also pretty much the last major support before testing the April lows again, which WOULD break this high timeframe market structure.

So watch… https://t.co/SLfYs7VUEp pic.twitter.com/C2SzN4gG6S

— Daan Crypto Trades (@DaanCrypto) December 7, 2025

A break below this support could send Bitcoin down to April lows around $76,000. The analyst noted this zone represents the last major support before testing those lows again.

Bitcoin experienced another leverage flush late Sunday. The price dropped below $88,000 briefly before bouncing back above $91,500.

Trader Bull Theory called the move “another example of manipulation on the low-liquidity weekend.” The volatility wiped out Leveraged positions on both sides of the market.

Federal Reserve Meeting Takes Center Stage

The Federal Open Market Committee meets Tuesday and Wednesday this week. A 0.25% rate cut is widely expected by market participants.

Polymarket traders are pricing in a 92% probability of a 25-basis-point reduction. This high probability has shifted Bitcoin price outlook from bearish to potentially bullish.

93% expectation in the market for a 25 bps rate cut by the Fed

– POLYMARKET pic.twitter.com/2gatGJDRxD

— Kashif Raza (@simplykashif) December 8, 2025

10x Research head Markus Thielen said crypto markets have lost momentum since the October rate cut. Fed Chair Jerome Powell signaled a data-dependent approach rather than a clear cutting cycle.

Thielen expects the December 10 decision to be followed by a cautious tone. This would mirror October’s approach and sustain mild pressure into year-end.

The market is dealing with depressed volumes and negative ETF flows. Upside participation remains thin while bitcoin trades in the $70,000 to $100,000 range.

Apollo Capital’s Henrik Andersson said the rate cut is already priced in. The outlook statement will be key for market direction.

Fed Chair Powell will be replaced in May next year. Andersson expects more interest rate cuts in 2026, which should support crypto and other risk assets.

LVRG Research director Nick Ruck pointed to upcoming jobs and inflation data releases. These could unlock renewed liquidity inflows if they align with expectations for continued monetary easing.

Technical Setup Points to Potential Breakout

Bitcoin has broken out of a long descending channel. This signals the strongest phase of the downtrend may have ended.

Price is hovering around $89,000, just beneath a key resistance-turned-support area. Sellers can still create short-term pressure until Bitcoin closes decisively above this zone.

The breakout shows early strength after bouncing from NEAR $79,000. Bitcoin pushed back toward mid-trend levels from the lower channel region.

The next major resistance level sits at $94,600. Clearing this level would confirm bullish continuation according to technical analysis.

This would be my bullish scenario.

Pre-FOMC and on Monday, correction to sweep the lows. Perhaps hitting $87K.

After that, bounce back up, swiftly, in which the uptrend is confirmed for #Bitcoin and it's ready to break $92K and therefore the run towards $100K in the coming 1-2… pic.twitter.com/lQezKkQM5W

— Michaël van de Poppe (@CryptoMichNL) December 7, 2025

Analyst Michaël van de Poppe outlined a scenario with short-term volatility before a sustained rally. He expects pre-FOMC selling pressure to potentially drive prices down to $87,000.

After sweeping liquidity at the lows, van de Poppe anticipates a swift bounce back. He expects Bitcoin to break $92,000 and run toward $100,000 in the coming one to two weeks.

Fed actions including reducing QT, cutting rates, and expanding money supply could support the business cycle. If the $94,600 resistance breaks, chart projections show upside targets at $108,000 and $116,000.