Bitcoin costs have tapped $117,000 twice over the previous couple of hours because the asset reached its highest degree 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 12 months. It will result in larger liquidity and a possible cycle of financial easing, which has been traditionally bullish for riskier property equivalent to crypto.
Crypto Analysts Weigh In
Economist Alex Krüger said he was prepared for the dovish minimize 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.”
Price cuts additionally end in liquidity movement from less-risky property like treasury payments to high-risk property like shares and crypto, observed ‘Ash Crypto.’
“As extra cuts occur, liquidity flows into Bitcoin, and altcoins will improve,” 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 movement, these catalysts might be priced in, resulting in a parabolic This fall rally.”
“The final time the FED minimize charges, the market pumped very exhausting,” mentioned crypto analyst Sykodelic.
The final time the FED minimize 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 had been final time the FED minimize 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 in regards to 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 sweet 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 considered 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% thus far this 12 months.
Talking on CNBC on Monday, Fundstrat’s Tom Lee said the Fed “can really reinject confidence by saying we’re again into an easing cycle,” earlier than including {that a} price minimize might be a “actual enchancment in liquidity.”
He predicted that Bitcoin and Ethereum would make a “monster transfer” within the final three months of this 12 months.
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