Bitcoin is down more than 1,6% in price today. The market’s biggest cryptocurrency struggles to recover momentum, as investors are concerned about the Federal Reserve’s tepid announcements.
The opinions of analysts are mixed on whether the Federal Open Markets Committee or FOMC will maintain rates at their current level or reduce them as requested by President Donald Trump.
Some analysts have said that while many financial companies and analysts expect the rates to stay unchanged today, others believe it could bring about a change. “a slightly dovish surprise” 10X research’s most recent trading note makes the case for Bitcoin.
It may be possible to mitigate the negative impact of DeepSeek on the risky assets like Bitcoin this week, but Standard Chartered’s Geoffrey Kendrick expects the crypto to bounce back regardless.
“DeepSeek has nothing to do with Bitcoin and in fact as DeepSeek means the price of AI is lower, it actually lowers inflation and is good for risk assets (like Bitcoin) which have no-AI presence,” He said Decrypt.
Kendrick anticipates that Bitcoin’s price will rise in the days to come, but the extent and timing of such a return depends on Jerome Powell.
“Risk assets will now wait for the Fed to pass tonight,” Then he continues. “If it is neutral I think BTC trades back above $105k, where it was pre-DeepSeek.”
Irrespective to the Fed’s decisions, it’s generally agreed that Bitcoin’s value will continue to rise in the months ahead, fueled by increasing institutional accumulation.
“While ‘risk off’ events like DeepSix can dampen near term price action, the longer term outlook for bitcoin is as bullish as ever, as individuals, corporates, TradFi, and governments around the world are all poised for accumulation,” Lou Kerner is the founder of CryptoMondays. Decrypt.
Kendrick shares this view, noting that the removal last week of SAB 121 accounting rule means U.S. Institutions are more likely now to enter into the digital assets market.
“Total net inflows to the BTC ETFs are now $38 billion (in just over 12 months),” “He says”
According to him, as of end-September only 1% value of Bitcoin ETF was owned by pensions funds. That suggests a large potential for future growth.
“I expect that long-only sector (which is worth $40 trillion in assets) to properly enter BTC in 2025, meaning flows will be greater this year than [the] last,” He makes predictions.
While there is still the possibility that the Trump administration could impose tariffs at some stage on its trading partners, certain figures believe that geopolitical or economic crises might actually help Bitcoin in the long run.
As Lou Kerner concludes, “BTC price action will continue to benefit from a world in crisis driving demand for a better store of value from everyone everywhere, and a dwindling supply.”
Stacy Elliott edited this article.