Bitcoin and Ethereum prices to crash after FOMC, top analyst warns

A popular analyst has predicted that Bitcoin, Ethereum, and the crypto market could crash after the Federal Reserve starts cutting interest rates on Wednesday. 

Summary

• Bitcoin and Ethereum prices may crash after the FOMC decision.
• An analyst believes that the rate cut has already been priced in.
• He expects the coins to rebound after the initial crash.

Top expert predicts Bitcoin and Ethereum prices to cash

In an X post, Ash Crypto, a popular pundit with over 2 million followers, predicted that the Bitcoin (BTC) price will crash towards $100,000. He expects Ethereum (ETH) to plunge from $4,500 to $3,800 if the Fed slashes by 0.25% as most economists expect. 

This crash will occur because market participants have already priced in the 25-basis-point cut which was confirmed on Wednesday. On the other hand, Ash expects these assets to jump if the Fed slashes rates by 50 basis points.

His view mirrors that of other popular analysts on Wall Street. In a recent note to clients, JPMorgan analysts warned that the stock market risked crashing after the Fed cut. They wrote:

Similarly, analysts at RBC Capital Markets warned of a reversal in the stock market because of buyer fatigue. While these estimates are on the stock market, they also apply to the crypto market, where most coins have jumped in the past few weeks.

Crypto market to rebound after initial crash

On the positive side, Ash believes that the upcoming Bitcoin and Ethereum crash will create a good entry point as they will bounce back once liquidations ease. He sees the Bitcoin price rising to $150,000 and Ethereum rising to between $7,500 and $10,000.

There are three main reasons why the crypto market rally will happen in the fourth quarter. First, Q4 has always been the best period for the crypto market. CoinGlass data shows that the average Bitcoin return in the fourth quarter is over 80%.

Second, the U.S. is moving toward a low-interest-rate environment as U.S. President Donald Trump will have Fed boss Jerome Powell replaced in 2026. Odds are that Trump will name Powell’s replacement several months in advance so that the market can start focusing on the incoming chair.

Third, the Securities and Exchange Commission will likely start approving altcoin ETFs in October, a move that may trigger an altcoin season as demand rises.