A top crypto analyst has warned that Bitcoin, Ethereum and broader crypto markets could suffer a sharp sell-off following the Federal Reserve’s interest-rate decision. The pundit, known as Ash Crypto and followed by over 2 million people on X, says the commonly expected 25-basis-point cut — confirmed by the Fed on Wednesday — has already been priced into markets, setting the stage for an initial downside reaction.
Ash expects Bitcoin to tumble toward $100,000 and predicts Ethereum could slide from about $4,500 to $3,800 if the Fed trims rates by 0.25%. He contrasts that path with a deeper cut: a 50-basis-point reduction, he says, would likely trigger a rally instead. The analyst also expects any early losses to be temporary, with prices rebounding once forced liquidations subside and buying interest returns.
Wall Street firms have echoed similar caution for risk assets. JPMorgan strategists warned clients that a widely anticipated Fed rate cut could prompt a “sell the news” reaction and increase downside risk for equities, while RBC Capital Markets flagged potential reversal pressure driven by buyer fatigue. Though those notes focus on stocks, analysts say the same dynamics apply to crypto after several weeks of strong gains across tokens.
For traders and investors, the message is mixed: prepare for volatility around the FOMC outcome and potential short-term pain, but also monitor liquidation flows for buying opportunities.
- If the Fed’s cut is modest and already priced in (0.25%) — some analysts expect an initial pullback followed by a rebound as forced liquidations ease.
- If the Fed delivers a larger-than-expected cut (0.50 %) — the move could extend the rally rather than trigger a sell-off.
In short: anticipate volatility around the FOMC decision, watch liquidation flows for buying signals, and be prepared for a short-term pullback if the cut is modest and already priced into markets.
As usual, we’re only reporting the news – not giving trading advice.