Bitcoin’s Fate Above $120K Now Hinges On Fed Rate Cuts, Not Cypherpunk Ideals
The traditional market now seems to be playing a much bigger role in Bitcoin’s pricing. Investors are waiting to see what happens with U.S. interest rates before betting on BTC’s next moon launch.
“I think there is still some potential upside this cycle, but isn’t it a strange world where Bitcoin’s hopes and dreams hinge on the actions of the very central banks it was created to render obsolete,” said Joel Valenzuela, a core member of Dash DAO (DASH).
Bitcoin’s early ideology was a reaction to centralized monetary failures. Its creators envisioned it as a parallel system—money not issued or controlled by governments, resistant to inflation, censorship, and manipulation, relying instead on cryptography and code.
Bitcoin’s all-time high was reached on August 13, when the king of cryptocurrencies hit $124,457 before settling near $113,000 two weeks later. Many new investors piled in on the record high headlines. Now, those latecomers are underwater, and analysts warn that rallies back to the $120,000 mark could face heavy selling pressure as traders look to exit at breakeven, Benzinga reported on Thursday, Aug. 28.
Bernstein securities analyst Gautam Chhugani, a long-term Bitcoin bull, sees support at around $110,000 with room to rally to $200,000 next on U.S. interest rate moves. The next Federal Reserve Open Market Committee meeting is set for September 16–17. The Fed will issue its policy statement on the 17th, followed shortly by a press conference by Chairman Jerome Powell.
CME FedWatch Tool shows traders pricing in an 85.3% chance of a 25‑basis-point cut.
“Bitcoin around $120 thousand was more likely a reaction to events at Jackson Hole,” said Marvin …
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