Fed interest rate cut imminent: BTC's next target is $140,000, and ETH, XRP are facing a critical breakthrough window?

The Fed may be preparing to cut interest rates for the first time this year at its Federal Open Market Committee (FOMC) meeting on September 17. Therefore, this is an excellent time to observe the three most valuable Crypto Assets in the market—Bitcoin (BTC), Ether (ETH), and XRP. FedWatch data shows that 90% of surveyed analysts agree that the U.S. central bank will cut rates by 25 basis points at this meeting and will do so again at the October meeting. Does this set the stage for new historical highs for these three Tokens? Let's take a look at their chart performance before this important economic event.

Bitcoin reaches key support level, could next hit $140,000?

(Source: TradingView)

Since mid-July, Bitcoin (BTC) has been consolidating. Although it reached a new all-time high weeks later, each surge was followed by a strong pullback. It seems that buyers prefer to lock in some profits each time Bitcoin sets a new high rather than waiting for the price to rise further.

Bitcoin recently rebounded from its support level of $108,500 and may test the $120,000 level again. The most likely catalyst for this rise may not be the rate cut itself, as this has already been priced in by the market. Instead, any comments from Fed Chair Jerome Powell suggesting that the rate cut will exceed expectations could provide the "fuel" needed to push Bitcoin to new record highs. Momentum indicators lean towards a bullish outlook as the Relative Strength Index (RSI) issued a buy signal when it rose above the 14-day moving average. What's next for Bitcoin? With market conditions still quite favorable, it could reach $140,000.

Accumulation phase begins, Ethereum may explode if it breaks through $4,800

(Source: TradingView)

Ethereum encountered strong selling pressure after touching $4,800 twice. This recent struggle to climb to higher levels also led to a brief consolidation period before the Fed's interest rate decision. However, its volatility range is much smaller than that of Bitcoin, which is favorable for a bullish outlook, as investors seem to be accumulating tokens ahead of the next rise.

$4,000 and $3,750 seem to be the most relevant support areas worth noting. The bearish breakout from the latest price channel indicates that the previous uptrend for Ethereum has ended. Either a new bull market begins, or if the Fed meeting triggers a "buy the rumor, sell the news" moment, the Token may experience a deeper correction. On the other hand, if the price breaks above $4,800, Ethereum's upside potential could be significant, as this would trigger a major short squeeze.

XRP: The breakout of the descending triangle lays the foundation for the next rise

(Source: TradingView)

Despite XRP's relatively stable price movement over the past few days, it has broken through a descending triangle pattern and is currently re-testing the upper limit of that pattern from above. The Token maintains a bullish structure, and historically, it has often seen significant increases after breaking out of similar patterns. $3.4 and $3.65 are key resistance levels to watch before the Fed meeting. Momentum seems to be on the bulls' side, as the RSI has also risen above the 14-day moving average and is above the midline. If the price can strongly break through these levels—preferably accompanied by strong trading volume—it could catalyze XRP's price to reach around $5 for the next wave of increases.

Conclusion

The Fed's expectation of interest rate cuts injects liquidity optimism into the crypto market, but history shows that severe volatility often accompanies the implementation of macro policies. The institutional holdings of Bitcoin, the fundamental ecosystem of Ethereum, and the compliance breakthrough progress of XRP remain the core support for long-term value. If the interest rate cut cycle is confirmed, crypto assets may usher in a new bull market; conversely, if the Fed's stance turns hawkish, short-term adjustments are inevitable. Investors need to balance opportunities and risks by combining technical positions with macro dynamics.