Fed Rate Cut: How is Bitcoin positioned for a potential bullish move in the coming months?

The Federal Reserve announced a 25 BPS interest rate cut recently in what was the first of its kind since December 2024. The move was somewhat anticipated by the Bitcoin enthusiasts around the world, one of the major reasons why the rate cut failed to have a larger impact on the broader Bitcoin market. 

At the time of the rate cut, BTC was trading between $115,000 – $116,000, and unlike previous rate cuts, the decision failed to take Bitcoin beyond the $117,000 level. While the price action in the recent past has largely been sideways, and the failure of the rate cut to influence the value, some analysts have revealed that they believe the coming months will also not witness any significant upward movement. However, that may not be the scenario given the uncertainty in the market.

Since the Fed rate cut was announced by Chair Jerome Powell, the market has not witnessed much volatility, and one of the reasons can be that the market has anticipated the move for a long time. However, Bitcoin’s long-term outlook following the rate cut remains a positive aspect for the market, signalling that liquidity is making a return. 

As a result, the market has received a short-term boost, especially for Bitcoin’s role as a risk asset. The latest rate cut remains more pertinent because it is considered a highly positive factor for all risk assets, and its short-term boost could influence a bullish movement in the impending Q4.