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Bitcoin Traders Talk New Highs Into Fed Rate Cut Decision

Bitcoin (BTC) traders gear up for volatility as crypto heads into the US Federal Reserve interest-rate decision.

  • Bitcoin bulls have a clear resistance level to overcome at $117,000 as the week gets underway.

  • All eyes are on the Fed as markets unanimously expect the first interest-rate cut of 2025 to come on Wednesday.

  • A historically accurate BTC price forecasting tool demands fresh all-time highs for Bitcoin within weeks.

  • Binance order-book data hints that large buyers were active over the weekend.

  • Institutional demand was nine times the mined BTC supply last week, with the trend seen pushing price higher.

Bitcoin price starts moving as TradFi returns

Bitcoin price volatility was heating up as TradFi markets returned, data from Cointelegraph Markets Pro and TradingView reveals.

Bitcoin Price, Markets, Market Analysis
BTC/USD one-hour chart. Source: Cointelegraph/TradingView

BTC/USD continues to see rejection at $117,000, making the level a point of interest for traders.

“$BTC got rejected from the $117,00-$117,200 region. This is the only key level to reclaim for Bitcoin now,” crypto investor and entrepreneur Ted Pillows told followers in his latest post on X. 

“If BTC fails to reclaim this soon, the chances of a correction towards $113,500 or lower will go up.”

BTC/USDT one-day chart. Source: Ted Pillows/X

Data from CoinGlass shows a large block of ask liquidity on exchange order-books immediately above the $117,000 mark, with price eating into bids below.

BTC liquidation heatmap. Source: CoinGlass

Fellow trader CrypNuevo suggested that $113,000 may come back into play around the time of Wednesday’s US Federal Reserve interest-rate decision.

“I think it could drop max to $113k-$112k this week,” an X thread released Sunday said.

Fed rate-cut talk dominates

This week should see the US Federal Reserve cut interest rates for the first time in 2025.

Markets anticipate that Wednesday’s meeting of the Federal Open Market Committee (FOMC) will yield a rate cut of 0.25%. Data from CME Group’s FedWatch Tool even sees a slight chance of a larger 0.5% cut.

Fed target rate probabilities for September FOMC meeting (screenshot). Source: CME Group

The circumstances around the move are unusual. As noted by trading resource The Kobeissi Letter, there have only been three years since 1996 in which the Fed has cut rates with stocks near all-time highs.

What happens as a result should please risk-asset bulls, including Bitcoin hodlers.

“There will be more immediate-term volatility, but long-term asset owners will party. Why do we think that? Because interest rate cuts are coming into rising inflation and the AI Revolution, only adding fuel to the fire,” it wrote in an X thread on Saturday.

“Gold and Bitcoin have known this. The straight-line higher price action we have seen in these asset classes is pricing-in what’s coming.”

Gold vs Bitcoin returns. Source: The Kobeissi Letter/X

As Cointelegraph reported, the Fed faces a balancing act of hot inflation markers and deteriorating labor-market conditions, and is expected to cite the latter as a basis for a rate cut.

“While inflation remains a problem for the Fed, the central bank’s focus has clearly shifted toward supporting the labor market,” trading firm Mosaic Asset Company summarized in the latest edition of its regular newsletter, The Market Mosaic.

Mosaic referenced recent downward job data revisions, noting the market “pricing several rate cuts ahead.”

“There’s a 100% chance the Fed will reduce rates when it meets this week…the only question is by how much,” it stressed. 

“Either way, a new rate cutting cycle is set to begin at a time when financial conditions are already loose and the stock market is signaling a positive growth outlook.”

Bitcoin bull market top may be “just weeks away”

Predicting the top for the current Bitcoin bull market is an increasingly heated topic among market participants.

Some believe that $124,500 will remain intact until next cycle, while many others are preparing for a final trip into price discovery.

At the weekend, Joao Wedson, founder and CEO of crypto analytics platform Alphractal, tapped his historically accurate BTC price forecasting tool as proof.

The Max Intersect SMA model, which employs simple moving averages (SMAs) and algorithmic analysis to pinpoint bull market tops, has not yet flashed for this cycle, he reported.

“Max Intersect SMA Model hasn’t signaled this cycle’s top yet, but it’s getting very close,” an…

cointelegraph.com

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