Citing Cointribune, the crypto market enters 2026 amid uncertainty as the Federal Reserve adopts a wait-and-see stance on further rate cuts. Despite three 0.25% cuts in 2025, Bitcoin and other major assets declined instead of rebounding. New York Fed President John Williams suggested no immediate need for further cuts, citing a strong policy position. Analysts warn that a pause in rate cuts could lead to Bitcoin falling to $70,000 and Ethereum to $2,400. Meanwhile, the Fed's shift to Reserve Management Purchases (RMP) could indirectly support risk assets, potentially aiding a recovery in crypto prices.
Bitcoin Could Drop to $70,000 in Q1 2026 if Fed Pauses Rate Cuts
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Summary
Bitcoin news highlights potential risks in 2026 as the Fed delays rate cuts. Despite three 0.25% reductions in 2025, Bitcoin and altcoins to watch failed to recover. John Williams of the New York Fed said no more cuts are needed now. Analysts warn Bitcoin could fall to $70,000 and Ethereum to $2,400. The Fed’s RMP strategy may still help risk assets, including altcoins to watch.
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