Experts Say Bitcoin Poised for Rebound if US Federal Reserve Cuts Rates

Bitcoin may be gearing up for a significant rebound as investors await the outcome of the U.S. Federal Reserve’s upcoming policy meeting, according to Nigel Green, CEO of global advisory firm deVere Group. His outlook comes as Bitcoin struggles after a sharp correction from its all-time high of $126,000, falling to nearly $80,000 in recent weeks.

Green believes the downturn is driven more by uncertainty than a fundamental decline in demand.

Market Pullback Driven by Uncertainty, Not Weak Demand

According to Green, the latest correction reflects investor caution as markets await clarity from the Federal Reserve.

“The scale of this pullback is the market’s response to uncertainty, not a collapse in underlying demand,”
he explained.

He notes that many investors scaled back exposure due to unclear macroeconomic signals. Once the Fed’s direction becomes clearer, he expects positioning in crypto markets to shift quickly.

Bitcoin’s Decline Has Cleansed Excess Leverage

Green argues that this sell-off differs from previous downturns. The correction from above $120,000, he says, purged “layers of leverage” that had accumulated during Bitcoin’s rally.

More than $19 billion in long positions have been liquidated so far, a process he believes leaves the market “structurally cleaner” and better positioned for recovery.

This reduction in leverage, he says, forms a stronger base for Bitcoin’s next upward move.

Liquidity and Fed Policy at the Centre of Bitcoin’s Outlook

Green emphasises that liquidity remains the most influential factor in asset pricing. When liquidity tightens, even strong risk assets face pressure. When it expands, Bitcoin typically benefits early adopters.

He argues that a 25-basis-point rate cut at the Fed’s December meeting would “shift financial conditions pretty much immediately.”

Dollar Weakness Could Boost Bitcoin

The strength of the U.S. dollar is another key factor. Lower interest rates generally weaken the dollar and reduce real yields—conditions that favor long-duration assets such as Bitcoin.

“Investors respond quickly when the dollar softens because they reassess the opportunity cost of holding cash,”
Green noted.

A softer dollar could steer global capital back toward crypto assets.

Institutional Investors Watching Fed Signals Closely

For large institutional investors, Green says the Fed’s communication will be as important as the rate cut itself. If policymakers hint that more adjustments may follow in 2026, it could reshape the yield curve and push portfolios toward risk assets, including Bitcoin.

He adds that the broader global backdrop, declining equity markets, weaker U.S. data earlier in the autumn, and ongoing geopolitical tensions, explains some of the recent volatility but does not undermine Bitcoin’s long-term investment thesis.

Institutional Interest in $80,000–$90,000 Range

Despite the downturn, institutional trading desks reportedly view the $80,000–$90,000 range as an attractive long-term accumulation zone rather than a distress signal. Green says this range reflects where professional investor confidence currently lies.

Conclusion

Nigel Green’s analysis points to a potential Bitcoin rebound—one highly dependent on the Federal Reserve’s next move. A December rate cut could weaken the dollar, expand liquidity, and trigger renewed institutional buying, setting the stage for Bitcoin’s next major rally.

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