Bitcoin (BTC) experienced a flash crash to $89,256 but has since recovered to reach a new all-time high of $108,786. However, a crypto analyst believes that further upside may be limited until the Federal Open Market Committee (FOMC) meeting later this month. The analyst predicts that BTC may continue to trade in the $100,000 to $110,000 range unless the Bank of Japan takes extraordinary policy measures. The CME FedWatch tool indicates a 99.5% probability that the US Federal Reserve (Fed) will not cut interest rates at the upcoming meeting. The analyst expects a market dump to follow the meeting, partially offset by a dovish-sounding press conference hinting at future quantitative easing. BTC profit-taking has declined significantly, and long-term holders are back in accumulation mode. Capital inflows into the digital assets market have also declined, leading to low liquidity and increased risk for leverage traders. Some analysts remain optimistic that BTC could reach its market cycle peak in Q2 2025, with projections of BTC surging to $200,000 by mid-2025. BTC must defend the $100,000 level, as failure to do so could result in a drop to around $97,500.



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