Pi Coin Faces Triple Threat: Fed Rate Decision Could Trigger Price Collapse

Federal Reserve moves cast long shadow over speculative crypto asset

Interest Rate Domino Effect

When traditional finance tightens its belt, risk assets feel the squeeze first. Higher rates mean safer returns elsewhere—why gamble on unproven tokens when Treasury yields offer guaranteed returns?

Liquidity Drain Reality

Market makers pull back when volatility spikes. Thin order books plus Fed uncertainty equals recipe for double-digit percentage drops. Remember what happened to similar 'next Bitcoin' projects during previous tightening cycles?

Sentiment Snowball

Crypto markets feed on narrative momentum. One whiff of risk-off sentiment from institutional players and retail follows like lemmings—because nothing crashes faster than a token built more on hype than utility.

Another day, another 'revolutionary' project learning the hard way that when the Fed speaks, speculative assets listen. Maybe focus on building actual utility before worrying about macroeconomics?

Pi Coin price may crash as investors sell the Fed cut news

One potential reason why Pi Coin may crash after the Federal Reserve interest rate cut as investors sell the news. That’s because market participants have already priced in a rate cut. The CME FedWatch Tool and Polymarket odds of the cut have jumped to over 97%. 

Therefore, PI Network and other cryptocurrencies may go through a buy the rumor and sell the news situation. This is a situation where investors buy an asset before a major event and then sell when it happens. 

Pi Network price is getting overbought

Technicals suggest that the Pi Coin price may crash after the Fed interest rate cut. The Relative Strength Index has moved to the overbought point of 70. Similarly, the Stochastic Oscillator has continued rising this month. 

An asset can continue rising when it moves to the overbought level. However, the odds of a pullback happening normally rises when oscillators MOVE to these levels.

The coin may also retreat to retest the upper side of the falling wedge pattern. Such a price action WOULD be highly bullish as it would confirm a break-and-retest pattern. 

Core challenges remain

The other main reason why the value of Pi may crash is that the coin has major underlying issues. First, it is one of the most inflationary tokens in the crypto industry because of its daily unlocks. The network will unlock over 1.27 billion Pi tokens in the next 12 months, which will put the price under pressure. 

Second, Pi Network is a ghost chain that has no utility, and efforts to boost its ecosystem have not succeeded. For example, the $100 million fund launched in May has not made any investments. 

Additionally, Pi has not been listed by any major crypto exchange since its mainnet launch in February, making it highly illiquid. It is also highly centralized, and some analysts warn that the ongoing rebound is part of market manipulation. These challenges mean that the Pi Coin value may crash soon.