Bitcoin costs have tapped $117,000 twice over the previous couple of hours because the asset reached its highest stage since August 23, nearly 4 weeks in the past.
BTC gained 1.5% on the day, and nearly 5% on the week, however had retreated barely to $116,600 on the time of writing on Wednesday morning in Asia.
The transfer comes on the day that the US Federal Reserve is predicted to decrease rates of interest for the primary time this yr. This may result in higher liquidity and a possible cycle of financial easing, which has been traditionally bullish for riskier property reminiscent of crypto.
Crypto Analysts Weigh In
Economist Alex Krüger mentioned he was prepared for the dovish reduce regardless of markets already pricing the transfer in.
“Although my market views haven’t modified a lot. I’m bullish on equities and Bitcoin. The market usually forgets how a lot BTC can transfer as a result of recency bias.”
Fee cuts additionally lead to liquidity circulate from less-risky property like treasury payments to high-risk property like shares and crypto, noticed ‘Ash Crypto.’
“As extra cuts occur, liquidity flows into Bitcoin, and altcoins will enhance,” he mentioned earlier than including:
“We have already got main catalysts like ETF approval, pro-crypto administration and regulatory readability. As soon as liquidity begins to circulate, these catalysts will likely be priced in, resulting in a parabolic This autumn rally.”
“The final time the FED reduce charges, the market pumped very exhausting,” mentioned crypto analyst Sykodelic.
The final time the FED reduce charges the market pumped very exhausting.
So I truthfully don’t perceive why so many individuals are bearish about price cuts?
We’re fairly actually, nearly to the day, in the very same place we have been final time the FED reduce charges.
IF we had been mega pumping… pic.twitter.com/OWVDcwgnZY
— Sykodelic (@Sykodelic_) September 16, 2025
In the meantime, BitMEX co-founder Arthur Hayes spoke concerning the Fed’s “third mandate,” which is now being mentioned. Advocacy for yield curve management (YCC) alerts a possible shift in financial coverage, which is nice for Bitcoin, he alluded.
Weakening the Buck
Extra liquidity additionally tends to weaken the US greenback as extra {dollars} chase fewer items and property. Bitcoin, usually seen as a “digital gold” or hedge towards inflation, traditionally advantages from a weaker greenback.
The greenback index (DXY), which measures USD towards a basket of currencies, has already weakened 12% up to now this yr.
Talking on CNBC on Monday, Fundstrat’s Tom Lee mentioned the Fed “can really reinject confidence by saying we’re again into an easing cycle,” earlier than including {that a} price reduce will likely be a “actual enchancment in liquidity.”
He predicted that Bitcoin and Ethereum would make a “monster transfer” within the final three months of this yr.
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