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Bitcoin and Ethereum Slide Further: Predictions Suggest Rising Odds of Dumps Amid Fed Uncertainty

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(10:47 PM UTC)
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  • Bitcoin (BTC) faces potential further drops to $50,000 support levels as bearish sentiment grows.

  • Ethereum (ETH) struggles below $3,000, pressured by broader market fears.

  • Federal Reserve rate cut odds stand at 65% for later in 2025, per CME FedWatch Tool data, impacting crypto liquidity.

Explore Bitcoin and Ethereum price predictions on Myriad amid Fed rate cut speculation. Stay informed on crypto market shifts. Read now for expert insights and forecasts.

What Are the Latest Bitcoin and Ethereum Price Predictions?

Bitcoin and Ethereum price predictions indicate continued downward pressure in the short term due to macroeconomic headwinds, with BTC trading around $58,000 and ETH near $2,500 as of recent sessions. Analysts from sources like Bloomberg note that global economic uncertainty, including inflation concerns, has led to reduced risk appetite among investors. On prediction markets such as Myriad, the probability of a Bitcoin rally to $70,000 by year-end has dropped below 40%, while bearish scenarios gain traction.

How Is Macro Uncertainty Affecting Crypto Markets?

Macroeconomic uncertainty, driven by persistent inflation and geopolitical tensions, has triggered a sell-off in risk assets, including cryptocurrencies. Bitcoin and Ethereum, often viewed as digital gold and smart contract platforms respectively, have not escaped this trend, falling over 5% in the past week. According to a report from the Federal Reserve Bank of New York, consumer confidence indices have dipped, correlating with crypto price volatility. Experts like those quoted in CoinDesk emphasize that without clearer signals from central banks, further declines are likely. Short sentences highlight the key drivers: high interest rates stifle borrowing, reducing liquidity for speculative investments like crypto. Data from Chainalysis shows on-chain transaction volumes down 15% month-over-month, underscoring reduced activity.

Frequently Asked Questions

What Are the Odds of Bitcoin Dropping Below $50,000 This Year?

On Myriad, the probability of Bitcoin falling below $50,000 stands at around 55%, based on current market bets. This reflects bearish technical indicators, such as breaking key support levels, and broader economic slowdown fears. Traders should monitor on-chain metrics for confirmation, as historical data from 2022 bear markets suggests rapid shifts when sentiment turns negative.

Will the Federal Reserve Cut Rates Again in 2025?

The Federal Reserve may implement another rate cut in the second half of 2025 if inflation continues to moderate toward the 2% target. Current CME FedWatch Tool probabilities hover at 65% for a September cut, easing monetary policy to support growth. This could boost crypto prices by lowering borrowing costs and encouraging investment in high-yield assets like Bitcoin and Ethereum.

Key Takeaways

  • Bearish Shift on Myriad: Prediction markets show declining odds for Bitcoin and Ethereum pumps, with dump scenarios now favored at over 60% probability.
  • Fed Policy Impact: A potential 2025 rate cut could inject liquidity into markets, historically correlating with 20-30% crypto rebounds per Federal Reserve studies.
  • Investor Caution Advised: Diversify portfolios and watch economic indicators like CPI reports for timely entry points into recovering assets.

Conclusion

This week’s top markets on Myriad highlight the evolving Bitcoin and Ethereum price predictions, tempered by Fed rate cut expectations amid ongoing macro uncertainty. As prices slide from all-time highs, the balance has tipped toward bears, but historical patterns suggest opportunities for reversal if central bank actions align favorably. Investors are encouraged to stay vigilant with data-driven analysis to navigate these volatile conditions effectively.

Delving deeper into the dynamics at play, the cryptocurrency market’s sensitivity to traditional finance cannot be overstated. Bitcoin, with its fixed supply of 21 million coins, often mirrors macroeconomic trends, as evidenced by its 40% correlation with the S&P 500 over the past year, according to data from Kaiko. Ethereum faces additional pressures from network upgrades and staking yields, which currently offer around 4% annually but fail to offset price declines in uncertain times. Prediction platforms like Myriad aggregate trader sentiments, providing a real-time pulse on where the market believes BTC and ETH are headed—currently leaning toward testing lower supports before any recovery.

Regarding the Federal Reserve’s next moves, policymakers have signaled a data-dependent approach, with recent minutes from the FOMC meetings indicating vigilance on employment and inflation metrics. A cut in rates could lower the federal funds rate from its current 5.25-5.50% range, potentially stimulating economic activity and risk-on behaviors. Economists from Goldman Sachs, in their latest outlook, project two to three cuts by year-end if GDP growth slows to 1.8%, a scenario that bodes well for crypto liquidity. However, persistent wage pressures or supply chain disruptions could delay this, prolonging the current cautionary stance in digital asset trading.

From an expert perspective, CryptoQuant analyst Ki Young Ju notes, “The on-chain data shows whales accumulating during dips, but retail fear remains high— a classic setup for volatility spikes.” This aligns with Glassnode’s metrics, where the Bitcoin fear and greed index registers at 35, signaling extreme fear. For Ethereum, layer-2 solutions like Optimism are scaling transactions, yet DeFi total value locked has dipped 10% to $80 billion, per DefiLlama figures, reflecting reduced participation amid uncertainty.

Shifts in Myriad’s top markets underscore a broader narrative: crypto’s maturation ties it closer to global events. Bets on Bitcoin reaching $100,000 by 2025 have halved to 25% probability, while Ethereum’s path to $5,000 faces similar skepticism. Meanwhile, the Fed rate cut market sees steady volume, with traders wagering on timing—July at 20%, September at 65%. These predictions, while not guarantees, offer valuable sentiment gauges for informed decision-making.

In summary, the interplay of Bitcoin and Ethereum price predictions with Fed policy expectations defines this week’s market focus. By monitoring these indicators without speculative leaps, participants can better position themselves for potential turns in the cycle. As 2025 unfolds, clearer economic signals may restore bullish momentum, rewarding patient, fact-based strategies.

Marisol Navaro

Marisol Navaro

Marisol Navaro is a young 21-year-old writer who is passionate about following in Satoshi's footsteps in the cryptocurrency industry. With a drive to learn and understand the latest trends and developments, Marisol provides fresh insights and perspectives on the world of cryptocurrency.
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