Bitcoin Price Prediction Following a 25 Basis Point Cut in US Interest Rates

Source: CryptoNewsNet Original Title: Bitcoin Price Prediction Following a 25 Basis Point Cut in US Interest Rates Original Link: https://cryptonews.net/news/bitcoin/32122895/ Bitcoin prices saw an increase following the US Federal Reserve’s (Fed) decision to cut interest rates by 25 basis points for the third consecutive time in 2025. This reduction is part of the Fed’s strategy to support economic recovery, aiming to encourage businesses and individuals to borrow at lower costs. This has a direct impact on riskier assets like Bitcoin, which typically gain value as institutional confidence increases.

This move is seen as a positive development for Bitcoin and the broader cryptocurrency market. Historically, low interest rates weaken the US dollar and make traditional assets like stocks and bonds less attractive. As a result, more buyers may prefer Bitcoin and other cryptocurrencies as an alternative store of value. Following the interest rate cut announcement, Bitcoin’s price briefly rose to $94,044, but the long-term outlook remains dependent on how well the asset can overcome key resistance levels such as $100,000.

Reactions of Corporate and Individual Investors to the Interest Rate Cut

The reaction to the 25 basis point interest rate cut has been largely positive, particularly among institutional buyers. With the US dollar losing its appeal, Bitcoin has become a more attractive investment vehicle. Smart wallets are accumulating Bitcoin, demonstrating strong institutional confidence in the cryptocurrency space despite overall market uncertainty. Open positions for Bitcoin have also significantly decreased, reaching around $27.5 billion, suggesting that some buyers are focusing on Bitcoin as a hedge against inflation.

On the retail side, Bitcoin experienced a short-term surge following the announcement. While some investors reacted optimistically, the typical “buy the rumor, sell the news” effect led to rapid selling after the interest rate cut was confirmed. However, this short-term volatility should not overshadow the long-term bullish outlook for Bitcoin, especially if the macroeconomic environment continues to support risky assets like cryptocurrencies.

Crypto analyst Michaël van de Poppe stated that Bitcoin is “following an uptrend” and that the volatility that the FOMC decision might cause could create some uncertainty, but added that “if it stays above $91,800, it is very likely that Bitcoin will continue to rise towards $100,000 in the coming period, as it is about to break through peaks and will start to gain momentum from there.”