Bitcoin Rises to 200,000 USD? Tom Lee Says the Fed Will Drive the Next Price Rise

The cryptocurrency market is heating up again as investors turn their attention to the monetary policy meeting of the Federal Reserve America (Fed) next week. Analysts expect the Fed to cut interest rates – a move that could create a new bullish wave for Bitcoin and the entire crypto market. 🔑 Why Are Interest Rates Important for Bitcoin? Low interest rates often encourage capital to flow into risky assets such as technology stocks and cryptocurrencies. Last year, after the Fed cut interest rates in August, the price of Bitcoin doubled. Traders are now betting that this scenario could repeat. Tom Lee – CEO at Fundstrat Global Advisors – commented on CNBC: "Bitcoin and Ethereum are extremely sensitive to monetary policy. With the upcoming cutting down the whales, BTC could very well reach 200,000 USD before the end of 2025. September 17 will be a crucial catalyst." 📈 Ambitious Forecasts Sean Dawson, head of research at Derive, said there is a 23% chance Bitcoin will rise 23%, trading above $140,000 by the end of the year. He also forecasts that Ethereum could increase by 60% to $7,000 in the same period. However, Dawson also warns that there is still a 20% chance BTC could fall below $100,000 and Ethereum could drop to $3,500. 🏦 Expectations of Fed Cutting Down the Whales Interest Rates According to the CME FedWatch tool, the market is betting: There is an 88% chance the Fed will cut by 0.25%. There is a 12% chance of a stronger cut, up to 0.5%. Even on the Polymarket platform, the probability of the Fed cutting interest rates by 0.5% has increased from 10% to 18% in just the past few days. Illia Otychenko – an analyst at the CEX.IO exchange – believes that: Cutting down the whales of 0.25% has been "priced in" by the market, so it's hard to create strong volatility. A cut of 0.5% would be a real shock, which could stimulate risk appetite or conversely, cause panic in the market depending on the reasons the Fed provides for such a strong decision. Meanwhile, if the Fed surprises by not cutting interest rates, this will be a "very negative" scenario that could sink Bitcoin and technology stocks, according to warnings from the research firm Ecoinmetrics. 💸 ETF Cash Flow Floods Into Bitcoin Positive signs are that Bitcoin ETFs continue to attract strong capital: On Monday alone, 368 million USD was poured in. Over the past 10 days, a total of 1.1 billion USD has flowed into Bitcoin ETF funds, according to data from SoSoValue. 📊 Cryptocurrency Price Trends Bitcoin (BTC): Bullish 0.8% in the last 24 hours, currently trading around 113,000 USD. Ethereum (ETH): Bullish 0.7%, trading at 4,358 USD. 👉 In summary: The Fed meeting on September 17 will be a major turning point for the cryptocurrency market. A strong cutting down the whales decision could ignite a bullish wave, pushing Bitcoin closer to the 200,000 USD mark. Conversely, a "hawkish shock" from the Fed could also cause the market to collapse. Investors need to prepare for both scenarios.