Bitcoin Surges to $94,000, but a ‘Hawkish’ Fed Cut Could Stall the Rally

Bitcoin (BTC-USD) climbed toward $94,000 on Tuesday, but analysts turned cautious about the sustainability of a year-end crypto rally as expectations grow that the Federal Reserve will cut rates this week while hinting at a potential pause in further easing.

Markets are broadly pricing in a 25 basis point rate cut at the conclusion of the Fed’s two-day meeting on Wednesday. Yet both CME’s FedWatch tool and Polymarket are showing rising bets that Chair Jerome Powell may signal a pause in January, as policymakers attempt to balance stubborn inflation with signs of a cooling labor market.

Despite near-term uncertainty, some strategists see room for recovery. Puckrin anticipates a crypto rebound once President Trump names a successor to Powell, whose term ends in May. The frontrunner, Kevin Hassett, is viewed as a crypto-friendly candidate.

Bitcoin has faced difficulty regaining momentum in recent weeks after plunging from its October peak near $126,000.