New Bitcoin Price Prediction after Fed Promises Rate Cuts
After falling 11% over the last month, Bitcoin (BTC) is starting to see some upward momentum, gaining 2.20% on Thursday after the somewhat positive Federal Reserve meeting.
On Wednesday, the Fed announced that it would not be making any further rate cuts at the moment but then went on to discuss two additional rate cuts coming later this year. That news helped shift the stock market and the cryptocurrency markets in a positive direction, bringing Bitcoin this morning to a price of $85,579 (BTC/USD).
Bitcoin’s market cap is up noticeably, but it is the trade volume where the impact of the Fed decision can really be seen. Over the last 24 hours, that volume has risen by 43%, up to $35.5 billion. This is significant for a crypto coin that has struggled in recent months.
Bitcoin received a bump from Donald Trump’s election win, gaining 58% from November to December of last year. It lost a large portion of these gains in the following months, though, but did not drop as significantly as the stock markets. Bitcoin has retained much of its gains and has remained a viable long-term investment for those who are willing to wait for it to shoot back up.
What to Expect from Bitcoin Now
This Fed rate meeting was the first good news that we have seen for Bitcoin in a while, and it could have long-lasting effects. Because there is promise of more cuts to come, and previous cuts have helped to boost Bitcoin significantly, investors should be eyeing $100K again for Bitcoin in the near future.
The Fed predicts that the economy will slow in its growth this year, seeing just 1.7% growth by the end of 2025. That is lower than they predicted back in December. The Fed says that tariff policies have hurt the economy and will slow down economic growth, resulting in a need for tighter control over interest rate cuts.
There are still two quarter point interest rate cuts expected for this year. That could mean that Bitcoin will move quickly when those happen. Since the coin has already moved more than 2% in just a few hours after a Fed meeting that issued no rate cuts, the coin could climb much higher when a rate cut happens. We can expect an increase of anywhere from 5-10% for Bitcoin at the next rate cut. The lower end of that scale would put Bitcoin’s price around $89,700, if the coin keeps its current pricing until then.
Tariff policies could continue to hurt Bitcoin’s prospects, with consumers tightening their belts and their budgets as a result. But if those tariffs change very little between now and the end of the year, Bitcoin will have a chance to recover. If Trump pulls back the tariffs a bit, Bitcoin could easily shoot past $90K as a result. We predict a price for $120-$150K for Bitcoin before the end of the year, but the higher end of that scale will definitely depend on the Fed rate cuts actually happening and the tariff policies slacking off.
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