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Analyst: If the Fed Holds Rates Steady in Q1 2026, Bitcoin Could Fall to $70,000

2025.12.25 22:31:07

Cointelegraph reported on December 25 that Jeff Mei, Chief Operating Officer of BTSE, outlined two key scenarios for Bitcoin and Ethereum in Q1 2026 tied to Federal Reserve policy: - **If the Fed holds interest rates steady**: Bitcoin could dip to $70,000, while Ethereum may fall to $2,400. - **If Reserve Management Purchases (RMPs) continue**: The liquidity injection would support risk assets, pushing Bitcoin to $92,000–$98,000. Ethereum could rise to $3,600, driven by Layer 2 scaling upgrades and growing DeFi appeal—with over $50 billion in ETF inflows and institutional accumulation further boosting the market. Notably, the Fed ended quantitative tightening (QT) on December 1 and launched RMPs, buying ~$40 billion in short-term Treasuries monthly—an move some analysts call "stealth quantitative easing (QE)."
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