The September FOMC minutes from the U.S. Federal Reserve hinted at potential additional rate cuts before the end of the year, prompting Bitcoin to stabilize between $121,000 and $124,000. Policymakers foresee up to two more rate reductions, with futures markets already pricing in looser financial conditions in the fourth quarter. Tim Misir, head of research at BRN, highlighted a global shift from monetary tightening to easing, noting that traders expect a strong likelihood of a 25-basis-point cut during the Fed’s next meeting on October 29. This renewed dovish outlook has boosted risk appetite across markets.
Data from CME FedWatch and forecasting platforms such as Polymarket show a sharp rise in expectations for multiple rate cuts this year. Analysts also point to ETF fund flows as a key indicator of institutional sentiment any slowdown could signal a potential trend reversal. Currently, Bitcoin remains steady around $123,000, with analysts identifying $121,000 to $126,000 as a critical short-term range. A sustained breakout above this level could push prices toward $130,000. With over $50 billion in open interest in the options market, volatility may rise, driven mainly by the Fed’s rate decisions and continued ETF demand, which remain central to Bitcoin’s price momentum.