Has Bitcoin bottomed out? This is what the experts say

Bitcoin is showing signs of stabilization as key macroeconomic pressures begin to ease, with experts suggesting the top crypto may have bottomed out.

Bitcoin is up nearly 2% in 24 hours to hit a high of $109,405, fueling a small rally in the broader altcoin market, CoinGecko data shows.

“I think Bitcoin has bottomed out here,” Peter Chung, head of research at Presto Research, told me Declutter. “I expect the next step will be upward rather than downward.”

The potential bullish turn follows the Fed’s easing last week, in which Chairman Powell signaled that quantitative tightening may be coming to an end and rate cuts are on the table.

With the end of the QT era in sight, risk assets may benefit from an easing of financial conditions as liquidity extraction slows, it is thought.

Meanwhile, there has been an easing of the trade war between the US and China, which previously sparked one historical liquidation cascade earlier this month, is also expected this week, with Finance Minister Scott Bessent and Deputy Prime Minister He Lifeng meet in Malaysia to further reduce tensions.

Sean Dawson, head of research at Derive, echoed Chung’s sentiment, but warned that risks remain.

“This is likely a local low. Lower interest rates are pushing investors up the risk curve into assets like crypto,” Dawson told me Declutter. “However, the risk of escalation of the US-China trade war could trigger a further fall.”

However, the immediate future for Bitcoin and the broader crypto market hinges on Friday’s upcoming inflation report Declutter It was said that the outcome of the US-China trade negotiations will have a greater impact on market sentiment.

“Bitcoin is extremely sensitive to these conversations,” Dawson said, noting that the biggest price moves this year have followed rate announcements. “If there is a positive resolution to these fears, we are likely to see a significant upward rally.”

Looking ahead, the Fed’s plan to end quantitative tightening, which comes with shrinking the central bank’s balance sheet, will be “bullish for Bitcoin,” Dawson said, noting that the return of liquidity creates a more favorable environment for speculative assets.

A quarter-point rate cut is expected before the Fed’s next decisive meeting, scheduled for October 29, according to bond traders.

While a larger-than-expected rate cut would be positive for Bitcoin’s price action, “this would persist and manifest over the longer term, likely in the first quarter of next year,” Dawson added.