Analyst Defies BTC Bearish Panic: Sees Bitcoin Soaring to $200K in Q4 on Fed Policy Shift

Despite Bitcoin (BTC) battling recent volatility, with costs dipping to their lowest in almost two months, some market watchers argue that the correction is much from a sign of a cycle high.

Instead, they predict the Federal Reserve’s September coverage resolution may set off a significant rally, pushing the primary cryptocurrency to unprecedented ranges by yr’s finish.

Analysts Push Back Against Bearish Sentiment

As CryptoPotato reported, Bitcoin fell beneath $108,100 on August 29 after U.S. PCE inflation information got here in barely hotter than anticipated, dragging the broader crypto market down by $170 billion in a single day. The transfer solely added extra gasoline to hypothesis that the bull run could have already peaked.

However, some specialists are difficult that view. In an in depth put up on X, pseudonymous analyst Mr. Wall Street argued that the present sell-off is a recalibration, not a bear market. According to him, true market peaks are often born from common euphoria, not the division and uncertainty presently seen amongst buyers.

Furthermore, he centered his consideration on what he considers to be September’s important occasion: the upcoming Federal Open Market Committee (FOMC) assembly, which is scheduled to happen in the following two weeks. While markets have priced in a typical 25 foundation level fee reduce, he suggests weakening labor information may power the Fed’s hand right into a extra substantial 50 bp discount.

Such a transfer, in his opinion, would catch markets off guard and certain set off a wave of fear-of-missing-out (FOMO) shopping for, as it will sign the true starting of a renewed quantitative easing cycle. This state of affairs kinds the premise for his worth targets of $140,000 to $145,000 and, finally, $160,000 to $200,000 in the fourth quarter of 2025.

CryptoQuant analyst Carmelo Alemán additionally contributed to the bullish case, noting in a current put up that a number of key metrics rule out a cycle high. He pointed to the NVT ratio staying low, which signifies sound community well being relative to valuation, in addition to secure miner reserves, which lack the aggressive promoting typical of main peaks.

Additionally, the MVRV ratio hasn’t reached the overheated ranges traditionally related to cycle climaxes. These components recommend long-term holder accumulation goes on, offering a strong basis for progress.

Bitcoin Price Action

Meanwhile, on the market, Bitcoin was buying and selling at $107,420 on the time of this writing, per CoinGecko. That places it down 1.2% in the final 24 hours and 5.1% over the previous week, underperforming the broader crypto market’s 1.5% dip in the identical interval.

Furthermore, the OG crypto has shed 7.2% in two weeks and 5.5% throughout the final month. However, its year-on-year efficiency stays its saving grace, with the asset up 83.5% in that point.

The current drop locations BTC 13.5% beneath its August 14 all-time high of $124,000. While the $107,000 to $109,000 vary has offered near-term help, the market has lacked the momentum wanted to reclaim increased ranges.

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