Why a Fed Rate Cut Might Not Be the Catalyst Bitcoin Needs

Reading Time: < 1 minute

With a 100% probability of a Federal Reserve rate cut next week, conventional wisdom would suggest a rally for risk assets like Bitcoin. However, BTC remains range-bound near $111,000, suggesting the market may have already factored in the news.

The failure to rally on a significantly weaker-than-expected jobs report underscores this dynamic. According to Rachael Lucas of BTC Markets, the anticipated policy easing is being offset by two key factors: institutional investors locking in gains and a stagnation in new capital entering through ETFs.

This creates a stalemate, leaving Bitcoin in a consolidation pattern despite a seemingly bullish macroeconomic setup.