Approaching Federal Reserve decision sees Bitcoin (BTC) maintaining at $116,000 price level
Bitcoin, the world's largest cryptocurrency, is currently trading at approximately $116,370, as of today's market data. This figure represents a slight drop from its all-time high of $124,100 reached on August 14.
The market is divided over how Bitcoin will react to the upcoming Federal Reserve decision, with some analysts predicting a potential drop. For instance, certain experts foresee Bitcoin dipping to around $104,000 or even $92,000 before potentially rebounding to new all-time highs.
Tom Lee, co-founder of Fundstrat, is one such analyst. He believes that the anticipated rate cut could serve as a catalyst for Bitcoin, potentially leading to a "monster move" within the next three months. Lee also predicts that Bitcoin could surge to $250,000 before the end of 2025, citing factors such as the changing U.S. political landscape and potential economic influences.
However, long-term holder confidence remains strong despite recent market fluctuations. This resilience is evident in the declining Bitcoin exchange reserves, which have dropped to their lowest level since January 2023. On-chain data from CryptoQuant reveals that Bitcoin reserves on centralized exchanges have fallen, suggesting an increasing amount of Bitcoin is being moved into private storage, potentially reducing selling pressure.
Bitfinex analysts note that Bitcoin currently trades at the upper edge of the range near $116,000, which remains resistance until decisively reclaimed. Resistance remains at the $116,000 level according to these analysts.
The cryptocurrency's 2021 bull run was largely driven by ultra-low U.S. interest rates following the COVID-19 pandemic. Lower U.S. interest rates typically benefit cryptocurrencies, increasing liquidity in financial markets and potentially flowing into speculative assets like Bitcoin.
The recent sell-off was largely driven by investors who purchased within the past six months. The Crypto Fear & Greed Index posted a "Neutral" score of 53 on Wednesday, reflecting a mix of fear and greed among market participants.
October 1 marks the beginning of the fourth quarter of 2025, historically Bitcoin's strongest performing quarter, with an average return of 85.42% since 2013. As the market waits for the Fed's decision, investors and analysts alike are keeping a close eye on Bitcoin's performance in the coming months.
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