Analyst: If the Fed Holds Rates Steady in Q1 2026, Bitcoin Could Fall to $70,000

BlockBeats News, December 25th, according to Cointelegraph, BTSE Chief Operating Officer Jeff Mei stated that if the Federal Reserve keeps interest rates unchanged in the first quarter of 2026, Bitcoin could fall to $70,000, and Ethereum could drop to $2,400. However, the Federal Reserve ended quantitative tightening (QT) on December 1st and initiated the Reserve Management Purchases (RMPs) plan, purchasing around $40 billion in short-term treasuries per month, which some analysts see as "stealth quantitative easing (QE)."

If RMPs continue in the first quarter of 2026, injecting liquidity and supporting risk asset prices. Jeff Mei predicted that Bitcoin could rise to $92,000 to $98,000, while Ethereum may benefit from L2 scaling improvements and DeFi's increasing attractiveness, rising to $3,600. Additionally, over $50 billion in ETF inflows and institutional accumulation will further drive the market higher.