Is Bitcoin’s $100K Floor at Risk as the Fed Struggles to Find Its “Neutral” Rate?
The post Is Bitcoin’s $100K Floor at Risk as the Fed Struggles to Find Its “Neutral” Rate? appeared on BitcoinEthereumNews.com.
The Federal Reserve has started cutting rates, but no one—not even the Fed itself—seems sure how far it should go. Markets are caught in the middle of this guessing game, and Bitcoin price is feeling the heat. With the world’s largest cryptocurrency hovering around $107,000 after a steep drop from its October highs, traders are asking one thing: has Bitcoin’s next big move already begun, or is the floor about to give way? The Macro Setup: A Fed Without a Compass The Federal Reserve has started cutting interest rates, but the debate inside the central bank is far from settled. The “neutral rate”; the mythical point where monetary policy neither stimulates nor restricts the economy; remains elusive. If the neutral rate ends up higher than expected (around 3.5%–3.9%), the Fed will have limited room to cut further. That means borrowing costs stay elevated longer, liquidity tightens, and risk assets like Bitcoin face stronger headwinds. On the other hand, if the true neutral rate is closer to 2.5%, we could see a softer landing and more fuel for Bitcoin’s next leg up. The post-COVID landscape complicates this picture. Rising government spending, AI-driven productivity debates, and the reconfiguration of global supply chains all push inflation expectations higher — forcing the Fed to keep its foot closer to the brake than the gas. That uncertainty alone is enough to keep Bitcoin price volatile. Bitcoin Price Prediction: BTC Losing Grip Near $107K Support BTC/USD daily Chart- TradingView The daily Bitcoin price chart paints a cautious picture. After a failed breakout above $122,000 in early October, Bitcoin has slipped sharply, now testing the lower Bollinger Band near $104,000. Heikin Ashi candles show sustained bearish momentum — long red bodies with minimal upper wicks — confirming strong selling pressure. The 20-day SMA (around $116,000) has turned…
Filed under: News - @ October 19, 2025 5:24 am