Supported by expectations of Fed rate cuts, Bitcoin faces resistance after breaking through $94,000

Source: DigitalToday Original Title: Despite Expectations of Fed Rate Cuts… Bitcoin Fails to Break Through $94,000 Original Link:

Bitcoin’s upward momentum after early 2025 has failed to continue, and it has retreated from the $93,000 range. Stronger-than-expected US employment data has led to diminished market expectations for Federal Reserve rate cuts.

According to blockchain media reports, although the number of new and continuing US jobless claims came in lower than expected, the market still expects the Fed to cut rates on December 10.

Such expectations could have a positive effect on risk assets like Bitcoin, but experts point out that a short-term resistance level must be broken. Industry analysis suggests: “If the Fed does not cut rates, consumer spending could drop sharply,” emphasizing the necessity of rate cuts.

Investment firms point out that there is an 89% probability the market expects the Fed to cut rates three times in a row, but there is still uncertainty about actual implementation. For Bitcoin to remain strong, it needs to break through the $96,500 resistance level. Analyst assessments indicate that Bitcoin’s failure to break through early-year prices signals the potential continuation of a bear market.

Meanwhile, Japan has announced a $135 billion economic stimulus package while also moving forward with rate hikes. This contradictory policy combination adds further uncertainty to the market.

The Fed Has No Choice:

Even if inflation reaches 3%, the Fed must cut rates to “save” US consumers.

Consumers are struggling while big tech stocks are soaring.

More rate cuts are coming, flowing into one of the hottest stock markets in history.

Hold assets, or you’ll be left behind.