Bitcoin Price to Test Below $75,000 Before Potential Recovery
Jiang Zhuoer, founder of the B.TOP mining pool, believes that the cryptocurrency market could experience a decline followed by a rise after the Federal Reserve's interest rate decision.
According to Zhuoer, the Fed will announce its interest rate decision at 9:00 PM today, with a 92% probability of a 25 basis point rate hike. He expects the policy rate target range to increase from 3.50%-3.75% to 3.75%-4.00%, and that this possibility is largely priced in by the market.
Zhuoer also emphasized the importance of the dot plot interest rate forecasts, which will indicate the central trend after removing median and extreme forecasts. He predicted two interest rate increases for 2026, suggesting another hike could be on the agenda later in the year.
Initially, Zhuoer expects selling pressure in the markets due to the interest rate decision and dot plot announcements. However, he believes Federal Reserve Chairman Kevin Warsh's speech, which will follow half an hour after the decision, may deliver more dovish messages, leading to a rise in the market.