Bitcoin’s Dip: What Bank of America Sees Coming Next

Bitcoin hits a rough patch. The world's largest cryptocurrency is facing headwinds, and one of Wall Street's biggest players just weighed in.

Reading the Charts

Bank of America's analysts aren't just watching the price action—they're dissecting the underlying flows and market structure. Their prediction hinges on a cocktail of macroeconomic pressure, shifting institutional sentiment, and that old crypto nemesis: volatility.

The Ripple Effect

A major bank's outlook doesn't exist in a vacuum. It influences fund managers, corporate treasuries, and the algorithmic traders that now dominate volume. When they signal caution, capital often follows, creating a self-fulfilling prophecy—at least in the short term.

Not Your Average Dip

This isn't just another buy-the-drop opportunity for retail degens. The analysis points to deeper structural factors at play, suggesting the road back to all-time highs might need a fresh catalyst. Think regulatory clarity or a new wave of adoption, not just meme-fueled hype.

The Bottom Line

Bank of America's call is a stark reminder that crypto has graduated to the big leagues. It now dances to the same tune as traditional markets: interest rates, inflation data, and the occasional gloomy forecast from a suit in Manhattan. Sometimes, the most bullish thing you can do is acknowledge a bearish signal—then decide if the bank's playing chess or just reading last quarter's report.

Bitcoin$85,977 entered December with a notable drop, with many altcoins facing losses exceeding 10%. Last week’s market uptrend was fueled by expectations of an interest rate cut, but the monthly closing candle turned the tides for cryptocurrencies. The critical question now is: what are the current forecasts regarding interest rates?

Bank of America’s Predictions

has recently shared its updated forecast for December’s interest rates and economic expectations. Following signals from Fed members last week, analysts suggested that the probability of a rate cut on December 10 has increased. They anticipate a positive end to the year with a 25-basis point cut.

Previously, the bank had not anticipated a December cut, but circumstances have changed. This development is generally favorable for cryptocurrencies; however, its effect on the charts has been limited. Analysts project two more rate cuts in 2026 but expect no changes until the June and July meetings.

“Our prediction for additional cuts next year is due to Powell’s expected departure, not our economic assessment.” – BofA Analysts

We may know the new Fed Chair before the year’s end. Hasset is the leading contender, followed by NY Fed President Williams, who boosted interest rate cut expectations with his dovish statements last Friday, supporting risk markets.

“If the Fed cuts rates next week, we believe it increases the risk of pushing the policy into a loose zone due to fiscal stimuli.” – BofA

Commentary on Cryptocurrencies

According to CME Group’stool, the market’s expectation for a rate cut is over 80%, virtually confirming the MOVE ahead of the meeting. The Fed is not fond of surprises, and with recent poor employment figures and Williams’s statements, expectations have improved. Despite the Fed’s situation improving, risk appetite hasn’t recovered, leaving BTC resistance without the expected support and displaying distressingly red charts today.

In the coming days, incoming data and the December 10 decision, along with‘s subsequent statements, will be crucial. Should he clearly state that rate cuts have ceased, it could dampen risk appetite until May. Conversely, dovish remarks from Powell may boost expectations for January.