Bitcoin Bulls Target New Highs Ahead of Fed Meeting
Bitcoin and crypto prices have experienced a decline in momentum in recent months following a significant surge into 2025. The bitcoin price, having risen from 2024 lows of just over $40,000, reached an all-time high of $126,000 in October before experiencing a sharp decline as concerns about a potential bitcoin price crash began to surface. Currently, astute traders are noticing a subtle signal emerging from China, which has recently begun to attract attention. Meanwhile, some of the most optimistic bitcoin and crypto speculators are anticipating a significant announcement from the Federal Reserve in December that could drive a surge in bitcoin prices. “Quantitative tightening we think will end December 1, that’s a de facto easing,” stated Cathie Wood.
The Fed’s quantitative tightening program, initiated in 2022, has slashed the Fed’s balance sheet to $6.6 trillion, down from approximately $9 trillion at its peak. This move is exerting pressure on risk assets like bitcoin as the Fed aims to withdraw liquidity from the financial system. Wood highlighted the improving liquidity conditions as she reiterated Ark’s long-term bitcoin price prediction of $1.5 million. Meanwhile, Tom Lee told that he anticipates the downward pressure on bitcoin prices to soon conclude following the sell-off that commenced in mid-October. “When we look at those prior corrections, even bitcoin in the last few years … each of them had the recovery, the rise from the low was faster than the drip to the bottom,” Lee said, predicting the bitcoin price could climb back above $100,000 in December and may even chart a fresh all-time high.
“The recovery from there to all-time highs will be faster than the decline.” That’s what occurs during every crypto downturn, as all the accumulated energy is unleashed. Individuals are positioned, awaiting developments, while panic selling ensues and forced sellers emerge; however, buyers are exercising patience. That’s what will happen. Lee highlighted the rising anticipation surrounding the Federal Reserve’s potential shift to a dovish stance at its December interest rate meeting. The market is currently reflecting a nearly 90% probability of an additional 25 basis point interest rate cut, marking the Fed’s third reduction since September. “Bitcoin has rebounded above the $90,000 mark amid rising expectations of a December Federal Reserve rate cut,” Greg Waisman stated noting that the company has observed “consistent buying patterns” on its platform. “Even long-time bitcoin skeptics now recognize its function as a gauge of risk sentiment throughout global financial markets.” The bitcoin price is undeniably a focal point in the market.
We’re witnessing a Thanksgiving bounce in the digital asset space, spearheaded by the largest cryptocurrency and bolstered by the recent surge in global tech stocks. In other developments, the growing institutional interest in bitcoin has been identified as a potential driver for an increase in its price, particularly with the influence of BlackRock, the world’s largest asset manager, leading market into the realms of bitcoin and crypto over the past two years. “Institutions are just able to start getting involved,” Joseph Raczynski stated, adding he anticipates the bitcoin price to soar to over $151,000 in December. “It’s just the beginning.” In the same survey, Ben Ritchie, forecasted that the bitcoin price could exceed $200,000 this year, driven by its increasing acceptance as a store of value among institutional and sovereign treasuries, alongside Fed interest rate cuts that are likely to stimulate bitcoin purchases. “Our bitcoin outlook is driven by fixed supply, rising institutional demand and broader acceptance as a store of value for institutional and sovereign treasuries. We believe further U.S. interest rate cuts will continue to support price action into the year’s end.”
