Analysts: Fed rate cut may not be enough to push BTC to $120K

A potential interest rate cut by the U.S. Federal Reserve at this month's Federal Open Market Committee (FOMC) meeting may have a limited impact on Bitcoin's price, according to some analysts. According to The Block, BTC Markets crypto analyst Rachel Lucas stated that while weak employment data could encourage a dovish Fed stance, a positive for risk assets, the market has already largely priced in a rate cut. She added that profit-taking by institutional investors and stagnant inflows into spot Bitcoin ETFs are constraining the asset's upward momentum. Separately, Kronos Research CIO Vincent Liu suggested that a Fed rate cut could also be interpreted as a signal of an economic slowdown. He noted that inflation concerns and dampened investor sentiment could suppress demand for risk assets. Liu concluded that without a significant increase in ETF inflows or a clear boost in liquidity, the $120,000 level will likely remain a strong resistance point for Bitcoin.