{"id":176068,"date":"2025-10-18T05:35:08","date_gmt":"2025-10-18T02:35:08","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=176068"},"modified":"2025-10-18T05:35:08","modified_gmt":"2025-10-18T02:35:08","slug":"bitcoin-price-prediction-us-fed-to-cut-interest-rates-and-end-qt-time-to-buy-the-dip","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/bitcoin-price-prediction-us-fed-to-cut-interest-rates-and-end-qt-time-to-buy-the-dip\/","title":{"rendered":"Bitcoin Price Prediction: US Fed To Cut Interest Rates And End QT, Time To Buy The Dip?"},"content":{"rendered":"

The uncertain macroeconomic outlook continues to create strong selling pressure on Bitcoin.\u00a0<\/span><\/p>\n

A week after the escalating US-China <\/span>trade war<\/span><\/a>, the weakness in regional bank stocks has further rattled investor confidence. The Bitcoin price fell to $103,500 on Friday, down over 18% from its all-time high.\u00a0<\/span><\/p>\n

Concerns over credit and liquidity now loom large, as rising defaults and tightening funding conditions threaten to spread stress beyond banks into broader markets.<\/span><\/p>\n

However, prominent analysts anticipate that mounting recessionary pressures will compel the US Federal Reserve to cut interest rates more aggressively, halt Quantitative Tightening, and inject fresh liquidity into the financial system.<\/span><\/p>\n

This is a highly bullish scenario for risk assets, including Bitcoin. While buying the dip remains a sound strategy, analysts advise doing so only after successful retests of key support levels or confirmed breakouts above resistance to minimize downside risk.<\/span><\/p>\n

Why Is Bitcoin Price Down Today?<\/b><\/h2>\n

As has been the case throughout this bull cycle, macroeconomic and geopolitical factors have played a key role in derailing Bitcoin\u2019s upward trajectory.\u00a0<\/span><\/p>\n

The US-China trade tensions appear to be easing slightly after US President Donald Trump signalled that the recently imposed 100% tariffs on Chinese goods may not be permanent. Trump is also expected to meet Chinese President Xi Jinping later this month on the sidelines of the APEC conference.\u00a0<\/span><\/p>\n

However, the weakness in regional banking stocks put the spotlight on the credit and liquidity risks facing the US economy. Banks such as Zions, First Republic, and PacWest fell sharply after disclosing losses tied to commercial real estate and auto loans.<\/span><\/p>\n

JPMorgan CEO Jamie Dimon cautioned that \u201cwhen you see one cockroach, there are probably more,\u201d suggesting that the recent loan losses could be an early sign of deeper credit troubles ahead.<\/span><\/p>\n

The recent spike in repo market activity has fueled liquidity concerns across Wall Street. Banks and dealers have increasingly tapped the Fed\u2019s Standing Repo Facility to secure short-term funding, signalling tighter cash conditions.\u00a0<\/span><\/p>\n

The widening <\/span>SOFR-RRP<\/span><\/a> spread, a key gauge of funding stress, shows that overnight lending rates are rising faster than the Fed\u2019s benchmark, a clear sign that liquidity in the banking system is tightening.<\/span><\/p>\n

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Analysts warn that shrinking reserves and higher funding costs could pressure risk assets like stocks and Bitcoin.<\/span><\/p>\n

Bitcoin Price Prediction: When To Buy The Dip?<\/b><\/h2>\n

Despite the credit and liquidity concerns, prominent analysts remain bullish, especially with the US Federal Reserve expected to engage in emergency market-supporting actions.\u00a0<\/span><\/p>\n

The <\/span>CME FedWatch<\/span><\/a> is now fully pricing in two 25-basis-point rate cuts this year, bringing the Federal target rate to 350-375.\u00a0<\/span><\/p>\n

Meanwhile, Fed Chair Jerome Powell has indicated that the central bank\u2019s <\/span>Quantitative Tightening<\/span><\/a> program is set to end soon. Macroeconomist Andreas Steno Larsen claims that the Fed will soon step in to provide liquidity to financial markets.\u00a0<\/span><\/p>\n

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The Fed will probably get involved on the liquidity side sooner than they think (no, not a QE program)<\/p>\n

\u2014 Andreas Steno Larsen (@AndreasSteno) October 17, 2025<\/a><\/p><\/blockquote>\n