Bitcoin Price Set to Soar as Fed Rate Cuts Loom! Is $100K Next?

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Key Takeaways:

  • Bitcoin has secured $95,000, with a 60% chance the Fed will cut rates by June 18, as the US economy takes a downturn.

  • A breakout past $95,000 could propel BTC toward $100,000, but a fall below $93,000 might drag us back to the $84,000 range. Oh, the drama!

  • Keep your eyes on the Bitcoin price levels — it’s all about those long-term holders’ cost basis!

Bitcoin (BTC) is at it again, attempting to break through the elusive $95,000 mark on this fine May 1st. The markets are abuzz with expectations that the US Federal Reserve might just cut rates sooner than anticipated. So, of course, BTC is trying to ride that wave.

Fed Rate Cut? More Like Fed Rate “Fuel” for Bitcoin!

Data from CryptoMoon Markets Pro and TradingView show Bitcoin creeping up after dipping below $93,000, just after the US GDP data revealed a shrinking economy. Well, the economy is shrinking, but Bitcoin is, apparently, growing.

In this delightful economic mess, the Fed will likely reduce rates to get the gears moving again. But of course, this means less yield on traditional assets like bonds, which pushes investors straight into the arms of Bitcoin (and other risky assets, too). Sweet irony, huh?

The chances of a Fed interest rate cut at the June 18 FOMC meeting have gone up from 57% on April 30 to 60% today. Well, look at that, just a little more fuel for the Bitcoin rocket!

History shows that rate cut expectations have usually been the perfect recipe for Bitcoin’s ascent. Remember back in December 2024? Bitcoin surged by more than 20% in anticipation of the last rate cut. It seems Bitcoin knows how to profit from Fed-induced chaos.

As the great (and somewhat mysterious) Bitcoin analyst BTCmoonmath pointed out on May 1st, traders are eagerly anticipating the Fed’s “easing” measures, despite the economy looking more like a sinking ship.

“Traders anticipate a Federal Reserve’s easing and rate cuts in the future, despite a shrinking economy and low consumer confidence.”

But

So, What’s Next for Bitcoin?

Right now, the magic number for Bitcoin is $95,000. Traders are glued to this level like a cat to a sunbeam. Many analysts believe that breaking through this resistance zone could send Bitcoin flying to new heights.

“The price has recently surged above both key technical levels and is now attempting to consolidate within this zone,” noted Glassnode in its latest report. I mean, Bitcoin’s doing some serious technical mambo-jumbo here, folks.

The market experts at Glassnode pointed to the 111-day simple moving average (SMA) at $91,300 and the short-term holder cost basis at $93,200. Bitcoin reclaimed these levels in its recent upward swing, showing off just how strong it really is. Don’t let anyone tell you Bitcoin’s not resilient!

“These are levels that must be broken and held for further price appreciation. A rejection could send the price back to bearish territory and leave many investors with a feeling of sweet, sweet regret.”

According to the ever-optimistic AlphaBTC, Bitcoin is ready to soar past $96,000. And why not? A solid break above $95,000 might just signal the start of a beautiful relationship with the $100,000 mark.

“This is what I want to see if Bitcoin can keep up its momentum today. A beautiful squeeze right into the low 100Ks. Get ready, folks!”

But, and there’s always a but, if Bitcoin falls below the April 30 lows at $93,000, it could see itself sinking toward $84,000 and $88,000. Ouch. Let’s hope that doesn’t happen, huh?

Crypto analyst Daan Crypto Trades added his two cents, suggesting that if the price consolidates and keeps pushing upward, we could very well see Bitcoin head toward that sweet $100K region. Fingers crossed!

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2025-05-01 14:06