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Bitcoin Price About To CRASH as Fed Pushes Back on September Rate Cut

Bitcoin Price About To CRASH as Fed Pushes Back on September Rate Cut

CryptotickerCryptoticker2025/08/21 16:15
By:Cryptoticker

Fed Pushes Back on September Rate Cut

A senior U.S. Federal Reserve official made it clear: “With current data, there’s no case for a September rate cut.” Inflation remains sticky, and the labor market is still resilient, giving the Fed little reason to ease up.

For crypto , that’s bad news. A delayed cut means tight liquidity stays longer, restricting the flow of cheap capital into risk assets. Historically, crypto thrives when monetary policy loosens. Instead, traders now face months of higher-for-longer rates, which could weigh on Bitcoin and altcoins alike.

Bitcoin Price Signals Upcoming CRASH – A Warning Sign

The below chart shows two eerily similar Bitcoin topping formations. The first one in late 2024 ended with a sharp multi-month correction. Now in mid-2025, $ BTC price is showing the same pattern again: repeated rejections at the highs, followed by choppy downward action.

BTC/USD 1-day chart - TradingView

At current prices around $112K–113K, $Bitcoin risks breaking down further. If this fractal repeats, another correction could be on the way—potentially wiping out a big chunk of recent gains.

What It Means for Crypto Investors

The mix of a hawkish Fed and bearish technicals makes for a dangerous setup. Without a rate cut to inject new liquidity, crypto markets could continue to struggle, and Bitcoin may be on the verge of a steep retracement.

Key levels to watch:

  • $110K – crucial near-term support. A break below could trigger acceleration lower.
  • $125K – the resistance bulls need to reclaim to escape the topping pattern.

Unless the macro picture softens, Bitcoin looks set for more downside pressure in the coming weeks.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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