Bitcoin Faces Market Volatility After Fed Meeting
Bitcoin is experiencing volatility following the recent Federal Reserve meeting. As of now, Bitcoin trades near $109,474, down 0.42% over 24 hours. The 24-hour trading volume is approximately $66.5 billion. The total cryptocurrency market capitalization dropped 1.04% to $3.68 trillion.
Crypto analyst Ted noted Bitcoin’s recent 6.5% drop after the Fed meeting on October 28-29. He warned of a possible retest of the $100,000 level. Ted added that historically, Bitcoin has reached new all-time highs after corrections.
Bitcoin’s Pattern of Repeated Corrections
Since mid-June, Bitcoin has seen four pullbacks ranging from 6% to nearly 8%. These occurred in mid-June (7.89%), late July (6.18%), mid-September (7.94%), and late October (6.42%).
Farzam Ehsani, CEO of VALR, said the cryptocurrency’s future depends on macroeconomic policies and market demand. He noted that a confirmed trade truce and dovish Fed signals might support a new market rally.
Despite these corrections, Bitcoin has consistently bounced back to higher levels. This suggests investor confidence remains strong and a major downturn is unlikely.
Fed Decision and Market Reactions
The Federal Reserve cut interest rates by 0.25% for the second time this year. However, the move was widely expected and did not boost market optimism. Fed Chair Jerome Powell said a December rate cut is “not guaranteed,” adding uncertainty.
Powell’s comments, combined with geopolitical tensions over Taiwan and nuclear testing, increased caution among investors. Both Bitcoin and U.S. stock markets declined as traders reassessed liquidity and risk.
Institutional Confidence and Outlook
Coinbase increased its Bitcoin holdings by 2,772 BTC in the third quarter. CEO Brian Armstrong confirmed Bitcoin remains part of the company’s long-term strategy.
Michael Saylor, CEO of Strategy, predicted Bitcoin could hit $150,000 by the end of 2025. Strategy recently received its first S&P credit rating of B-minus, marking a milestone for Bitcoin-backed corporate credit.
Ehsani pointed to resistance levels around $116,000-$117,000. Potential targets for Bitcoin could reach $126,000 to $130,000 by year-end. However, he warned the rally relies on institutional and whale activity, with limited retail participation.
Bitcoin’s recent price decline seems like a healthy correction, not a crash. The global economy remains uncertain, but major investors’ confidence suggests Bitcoin’s long-term growth continues.
