Trump-led Bitcoin rally set to surge, but Fed rate decision could slow momentum

With the last FOMC meeting on December 18, BTC prices fell nearly 15%. At the time, the Fed cut its key interest rate by just a quarter point, reducing the central bank’s target rate to 4.25% and 4.5%. In its statement, the Fed only projected two rate cuts in 2025, citing continued high inflation.

Ahead of the next Fed meeting, CME Group’s FedWatch predicts an 88.8% chance that the federal rate will be set between 425 and 450 basis points, with just an 11.2% chance that rates will stay at 400 and 425 basis points.

Thielen Believes Fed Communication Will Be Key to Driving Bitcoin Rally

According to Thielen, the timing of the Federal Reserve’s communication will be key to determining future Bitcoin prices. He believes that inflation rates will decline in 2025 and the timing of the Fed identifying the change and communicating it to the public will affect the Bitcoin price rally.

Furthermore, Thielen suggested that Bitcoin’s momentum will be fueled by the speed at which institutional investors re-engage in the crypto market, as evidenced by stablecoin moguls and inflows into Bitcoin spot ETFs. He also predicts that BTC’s price will be between $97,000 and $98,000 by the end of the month.

Meanwhile, Ledn CIO John Glover expects Bitcoin’s price to fall to $89,000 before rebounding again to $125,000 by the end of the first quarter. He predicts that Bitcoin will see another retracement, falling to $100,000 before reaching $160,000 by the end of 2025 or even early 2026.#BTC100KTrumpEffect $BTC