The Federal Reserve meeting may trigger a significant surge in Bitcoin, with analysts targeting prices above $92,000.

Analysts predict that this week’s Federal Reserve meeting could become a key catalyst for a new round of Bitcoin gains. After Bitcoin broke above $92,000 on Monday, London Crypto Club analysts David Brickell and Chris Mills noted in a report that the Fed could inject more liquidity into the banking system on Wednesday, thereby boosting risk assets including Bitcoin.

The two analysts forecast that the Fed will adopt a more dovish policy stance by expanding its balance sheet through an implicit bond-buying program. They believe that in the context of a rate-cutting cycle combined with liquidity expansion, “the money printer is restarting,” which will provide strong structural support for Bitcoin. They expect that in such a policy environment, Bitcoin prices could “rise significantly,” break out of the current range, and head toward higher levels.

The market widely expects the Fed to cut rates again this week. According to Yardeni Research, most policymakers anticipate a third 25-basis-point rate cut this year. CME’s FedWatch tool shows an 86% probability of a rate cut, while traders on the on-chain prediction market Polymarket estimate the probability as high as 94%. Historically, low interest rates tend to benefit high-risk assets like Bitcoin, as falling risk-free yields drive capital flows into the crypto market.

On the macro front, the policy moves of major global economies are also influencing market sentiment, including important decisions soon to be announced by the central banks of Canada, Australia, and Switzerland, upcoming export data releases from China and Taiwan, and a possible rate hike action by Japan. All of these events will affect investors’ expectations for global liquidity.

Meanwhile, there have also been key regulatory developments in the US. The CFTC announced last week that it will allow spot crypto products to be launched on federally regulated exchanges, and the SEC Chair also stated that the US financial system is rapidly moving toward an era of tokenization, further strengthening market confidence in the industry’s long-term growth.

Despite the renewed bullish sentiment in the market, not all analysts believe Bitcoin will continue to strengthen through the end of the year. Bloomberg strategist Mike McGlone maintains a bearish outlook, predicting that Bitcoin could fall below $84,000 by the end of 2025.

Overall, the Federal Reserve meeting has become the focal event for the crypto market this week, and policy developments will directly impact Bitcoin’s short-term trend, while the area above $92,000 is becoming the market’s new focus range. (DL News)