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Analyst: If the Fed holds rates steady in Q1 2026, Bitcoin could drop to $70,000

Analyst: If the Fed holds rates steady in Q1 2026, Bitcoin could drop to $70,000

2025-12-25 22:30

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ChainThink News, December 25: According to Cointelegraph, BTSE Chief Operating Officer Jeff Mei stated that if the Federal Reserve holds interest rates steady in Q1 2026, Bitcoin could drop to $70,000, while Ethereum might fall to $2,400. However, the Federal Reserve concluded Quantitative Tightening (QT) on December 1 and launched the "Reserve Management Purchases" (RMPs) program, buying approximately $40 billion in short-term Treasury securities monthly—interpreted by some analysts as "stealth Quantitative Easing" (QE).


If RMPs continue through Q1 2026, they could inject liquidity into the market, supporting risk asset prices. Jeff Mei forecasts Bitcoin could surge to between $92,000 and $98,000, while Ethereum may benefit from Layer 2 scalability improvements and enhanced DeFi attractiveness, potentially rising to $3,600. Additionally, over $50 billion in ETF inflows and institutional accumulation could further drive market appreciation.

#Bitcoin#DeFi#Ethereum#ETF Fund Inflows

Disclaimer: Contains third-party opinions, does not constitute financial advice

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