Analyst: The expectation of the Federal Reserve cutting interest rates in 2026 may trigger a rise in Bitcoin prices

Deep Tide TechFlow News, December 31 — According to Forbes, the US dollar experienced its largest annual decline since 2017, falling nearly 10% in 2025. Analysts predict that due to the Federal Reserve’s expectation of further rate cuts in 2026, the dollar will continue to weaken, which could drive Bitcoin prices higher.

Currently, Bitcoin is trading around $90,000, failing to follow the recent upward trend of gold and silver. The latest Federal Reserve meeting minutes show that although the vote decided to cut rates, policymakers are divided on further adjustments. The market expects an 82% probability that the Federal Reserve will keep rates unchanged at the January meeting, while prediction platform Polymarket forecasts a 96% chance of rate cuts before June.

President Trump hinted at possibly replacing Federal Reserve Chair Powell in January and pushing to further lower the current interest rate of 3.5%-3.75%.

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