How to Trade Bitcoin Around Fed Rate Cuts π
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Bitcoin is highly sensitive to US monetary policy β hereβs how traders can make money from interest rate decisions:
Monitor rate-cut odds
Current odds: 100% chance of Fed cutting rates today.
Historical patterns: BTC often rallies before and after expected rate cuts.
Lesson: Track CME FedWatch or Polymarket data to anticipate short-term swings.Key resistance levels matter
BTC sits near $118,000, crucial for breakout.
Holding above this level could trigger new all-time highs, possibly $120Kβ$124K.
Lesson: Use technical analysis + macro events to set entry and exit points.Prepare for volatility
Fed Chair speeches can shift markets instantly.
BTCβs risk index shows areas for potential retracements: $116,800β$114,500 or $112,000 support.
Lesson: Use stop-loss orders and focus on risk-to-reward ratios for safe trading.Play scenarios, not guesses
Traders can draft multiple scenarios:
Bullish: Breaks $118K β ATHs
Bearish: Rejection β retrace to $114β$112K
Neutral: Consolidation β wait for confirmation
Lesson: Treat BTC like macro-driven assets β plan trades based on outcomes, not hope.
Bottom line:
Interest rate moves create huge trading opportunities. By combining macro awareness, technical resistance levels, and disciplined risk management, you can turn Fed events into profitable Bitcoin trades.