Bitcoin reclaims $94K as markets price in near‑term Fed rate cut
Bitcoin surged back above $94,000 as traders positioned ahead of the Federal Reserve meeting, where markets priced in a 25 basis point rate cut. The CME FedWatch Tool estimated roughly a 90% probability of a cut, while Polymarket odds were near 95%. The rally lifted the broader crypto market: Ether (ETH) traded above $3,350 (up ~7%), Solana (SOL) near $144, and XRP around $2.16, with overall market gains near 4% in 24 hours. Traders are now focused on Fed Chair Jerome Powell’s forward guidance for signals on whether easing will continue into 2026 or adopt a more dovish stance late in 2025. Key keywords: Bitcoin, BTC price, Fed rate cut, Federal Reserve, Jerome Powell, crypto market rally.
Bullish
This news is bullish because markets have priced a high probability of an imminent Fed rate cut, which typically increases risk appetite and liquidity — positive drivers for Bitcoin and major altcoins. The immediate price reaction (BTC > $94k, ETH +7%, market +~4%) shows short-term buying momentum as traders position for easier monetary policy. Historically, confirmed rate cuts or credible easing expectations have supported crypto rallies by lowering real yields and encouraging leverage in risky assets (examples: post-2020 monetary easing and parts of 2023 risk-on moves after dovish Fed signals). Short-term implications: elevated volatility but likely continued upside as long as guidance remains dovish and the cut is delivered. Traders should watch Fed statements, Powell’s press conference, and on‑chain liquidity flows; unexpected hawkish language or stronger-than-expected economic data could trigger swift retracements. Long-term implications: structural support depends on sustained lower rates and macro conditions; a single near-term cut may not guarantee a prolonged bull market if inflation reaccelerates or monetary policy pivots. Manage risk with defined stops, position sizing, and monitoring derivatives funding rates and futures open interest for signs of overheating.