Citing MarsBit, if the Federal Reserve pauses rate cuts in Q1 2026 amid persistent inflation, Bitcoin could fall to $70,000 and Ethereum to $2,400. Despite three rate cuts in Q4 2025, the crypto market did not rebound, with total market cap dropping over $1.45 trillion from its October peak. BTSE's COO Jeff Mei warned that a Fed pause in 2026 Q1 could push BTC and ETH lower, but the Fed's 'hidden QE' through RMPs may stabilize prices by injecting liquidity.
Fed's 2026 Q1 Outlook: Potential Impact on Bitcoin and Crypto Market
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Summary
Market outlook for 2026 Q1 suggests Fed rate cut pauses could pressure Bitcoin and Ethereum. Citing MarsBit, BTC may fall to $70,000 and ETH to $2,400 if inflation remains. Despite three rate cuts in Q4 2025, the market failed to rebound, losing over $1.45 trillion. Fear and greed index remains bearish. BTSE’s Jeff Mei noted a Fed pause could drive prices lower, though RMPs may stabilize the market by adding liquidity.
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