Bitcoin price dip to $92.5K caused by Fed interest rate concerns: Analyst
Bitcoin’s recent correction was likely triggered by concerns regarding the US Federal Reserve’s tightening monetary policy, which may emerge as the main factor influencing Bitcoin’s price action in 2025, analysts told Cointelegraph.
Fed monetary policy concerns push BTC price lower
Bitcoin’s 
BTCUSD price temporarily breached the $100,000 psychological mark on Jan. 7, for the first time since Dec. 19, before staging a correction to $92,500, Cointelegraph Markets Pro data shows.
Bitcoin’s dip to $92,500 was mainly triggered by growing concerns over the Federal Reserve’s tightening monetary policy for 2025, according to Ryan Lee, chief analyst at Bitget Research.
The analyst told Cointelegraph:
Signs of economic resilience have delayed expectations of a potential rate cut by the Federal Reserve, with markets now expecting the first lending rate cut to occur on June 18, according to the latest estimates of the CME Group’s FedWatch tool.
As for the Federal Reserve’s next meeting on Jan. 29, markets are expecting a 95.2% probability that interest rates will remain unchanged.
Bitcoin’s correction liquidated over $631 million worth of leveraged long positions in the past 24 hours, CoinGlass data shows.
The large liquidation event could lead to a consolidation phase as traders reduce their leveraged positions, added Lee:
Bitcoin drop to $90,000 could happen before real rally begins
Bitcoin’s price may drop below the $90,000 level before embarking on a strong rally above $126,000, according to market analysts.
While Bitcoin’s long-term trajectory remains promising, BTC may need another correction to end this period of holiday illiquidity, according to John Glover, chief investment officer of Ledn and former managing director at Barclays.
Glover told Cointelegraph:
To avoid more downside, Bitcoin needs to hold above the $91,000 support, wrote popular crypto analyst Rekt Capital in a Jan. 8 X post:
Still, analysts remain optimistic about Bitcoin’s price trajectory, with some expecting a cycle top above $150,000 in late 2025, driven by a predicted $20-trillion increase in the global money supply, which could attract $2 trillion of investment into BTC.