Bitcoin Price Prediction: Fed’s Crypto Pivot Will Cause Bullish Breakout
Bitcoin (BTC) is back in the headlines, topping $112,000, after the US Federal Reserve announced plans to consider “payment accounts” for crypto and fintech companies.
The move could give digital asset companies direct access to the Fed’s payments rails, and development analysts are calling it one of the most bullish financial institution signals this year.
This announcement coincided with Bitcoin’s renewed upward momentum, pushing the price to $112,413 and the overall cryptocurrency market cap rising once again to over $4.6 trillion.
Why the Fed’s decision is a game changer
The Fed’s new proposal would allow licensed fintech and cryptocurrency companies to open streamlined accounts with the central bank.
This means faster payments, fewer intermediaries, and a more direct connection between traditional banking systems and blockchain-based payments.
According to Reutersthe program will remain limited without overdraft or lending privileges, but this marks a clear move towards consolidation rather than isolation.
This regulatory openness comes after months of intense scrutiny and signals a more collaborative phase between U.S. regulators and the digital asset industry.
Market reaction: Bitcoin leads, altcoins catch up
Following this news, Bitcoin rose nearly 5% during the day, breaking above the key resistance level at $111,500.
Ethereum (ETH) also gained momentum, trading around $3,900, while Solana (SOL) and XRP posted small but steady gains.
Sentiment across social media and institutional channels suddenly became positive, with traders labeling this as an “unlocking crypto institution” moment where banks, fintechs, and blockchain players will soon be able to operate within the same infrastructure.
Technical Outlook: Can Bitcoin sustain above $112,000?
From a technical perspective, BTC breaking above $111,000-$112,000 confirms a strong bullish reversal pattern after weeks of sideways movement.
The next resistance level is near $115,000 to $118,000, and the closest support is near $108,000.
If Bitcoin can sustain above this breakout level, it could retest the $120,000 zone by the end of the month and potentially hit new all-time highs ahead of the next Fed meeting.
RSI levels remain healthy, indicating room for further upside, with capital inflows increasing sharply and institutional investor participation confirmed.
Macro Outlook: Why Bitcoin Can Continue to Rise
Beyond the charts, the macro environment is also favorable for cryptocurrencies.
A softening of the Fed’s stance, coupled with easing inflation and infrastructure deployment for digital assets, could mark the start of a new bullish cycle.
Analysts argue that if crypto companies gain partial access to the Fed’s network, it could increase liquidity, lower transaction costs, and legitimize the use of stablecoins within the U.S. economy, all of which would strengthen Bitcoin’s long-term narrative as digital gold.
Final Thoughts: Short-term volatility, long-term strength
While Bitcoin’s rapid rise could lead to short-term profit-taking, fundamentals are increasingly positive.
The Fed’s move demonstrates the role of cryptocurrencies within the financial system that the market has been waiting for since 2021.
If BTC sustains above $110,000, the next leg could target $120,000-125,000 in the short term and $140,000-150,000 by early 2026 if the macro environment remains supportive.
In other words, the Fed has given Bitcoin more than just a rally, it has given it legitimacy!
