Bitcoin Price Eyes $100K? Fed Emergency Rate Cut Could Ignite 30% BTC Rally

    Let's explore how a Fed emergency rate cut could spark a Bitcoin price surge and ignite a massive BTC rally.

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    Updated Apr 09, 2025 6:31 PM GMT+0
    Bitcoin Price Eyes $100K? Fed Emergency Rate Cut Could Ignite 30% BTC Rally

    The price of Bitcoin shows signs of reversal after a tremendous drop of 3.71% on Tuesday. It currently trades around $76,481 at the early Asian session. The sentiment in the market dramatically turned following speculation for Fed emergency rate cuts as the U.S. Treasury yield soared, with the 10-year jumping to 4.5% and the 30-year hitting 5%.

    The volatility witnessed in the bond market, possibly caused by a $2 trillion basis trade unwind or China treasury sell-off, is fuelling speculation that the Federal Reserve may intervene. Investors are now gearing up for that all-important possible BTC rally. Analysts expect that such a scenario would have key resistance levels around $81K, $84K, and possibly move towards $100K.

    Bitcoin Price Braces for Rally Amid Fed Emergency Speculation

    Bitcoin is at $76,481 after falling 3.71% on Tuesday, due to market speculation. Such movements in the cryptocurrency market coincide with extremes of volatility in the U.S. Treasury market, mainly in yields like that of the 10-year at a high benchmark of 4.5% and the long yield at a 30-year high record of 5%. According to analysts, this might be linked to the unwinding of a $2 trillion basis trade or the potential treasury sales by China.

    That brought renewed confidence to crypto investors who now expect the Fed’s intervention to trigger lower interest rates, which would motivate speculative buying into bitcoin to reverse the price trend. Indeed, that paints a picture of the knotty relationship between macroeconomic events and cryptocurrency’s movement. While waiting for light on the way forward with the Fed, Bitcoin’s path remains in limbo, but indeed very much lively with the winds of international economics.

    Bitcoin Price Analysis of the Last 24 Hours

    The trading day began with bearish momentum. On April 08, the MACD presented two Death Cross formations on a bearish outlook at 02:30 and 06:40 UTC, supported by rising RSI readings indicating overbought conditions around the same hours, which led to a downtrend. On April 09, the early hours experienced new selling as Bitcoin strayed for a fleeting moment near the $74,633 support level due to sustained oversold signals from the RSI at 14:55 UTC. 

    Chart 1, analysed by Anushri Varshney, published on TradingView, April 9, 2025

    Shortly after, though, the MACD generated a Golden Cross around 04:10 and 09:45 UTC, allowing for a rapid reversal into the previous trading range. The market is currently testing the $80,912 resistance level. If there is upward momentum in the BTC rally, the next area of resistance will be close to $81,000. Currently, there is a lot of caution, with market speculators anticipating a potential Fed emergency rate cut, which could greatly sway Bitcoin’s short-term direction.

    Bitcoin Price Dynamics and Future Trajectory

    The prospect of Bitcoin has recently become a center of interest for all investors and analysts as the cryptocurrency manages different market conditions. Institutional adoption and regulatory and macroeconomic developments are the most critical factors in determining the price. The past cycles of the currency, therefore, indicate that it performs on the rising side very well in the years following halving events, thus supporting the BTC rally.

    However, its immediate price movements remain predicated on macroeconomic factors, such as the Federal Reserve. In an emergency cut by the Federal Reserve on rates, Bitcoin’s price may become transcendental above critical resistance levels and make a run toward new highs. Ultimately, Bitcoin’s fate lies in institutional demand, technological innovations, and investor direction. In the meantime, all attention is reserved for the Fed as well as the general economic picture to determine if Bitcoin can keep on track to recovery and growth over time.

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