Bitcoin prices have tapped $117,000 twice over the past couple of hours as the asset reached its highest level since August 23, almost four weeks ago.<\/p>\n
BTC gained 1.5% on the day, and almost 5% on the week, but had retreated slightly to $116,600 at the time of writing on Wednesday morning in Asia.<\/p>\n
The move comes on the day that the US Federal Reserve is expected to lower interest rates for the first time this year. This will lead to greater liquidity and a potential cycle of monetary easing, which has been historically bullish for riskier assets such as crypto.<\/p>\n
Economist Alex Kr\u00fcger said<\/a> he was ready for the dovish cut despite markets already pricing the move in.<\/p>\n \u201cThough my market views have not changed much. I\u2019m bullish on equities and Bitcoin. The market often forgets how much BTC can move due to recency bias.\u201d<\/p>\n Rate cuts also result in liquidity flow from less-risky assets like treasury bills to high-risk assets like stocks and crypto, observed<\/a> \u2018Ash Crypto.\u2019<\/p>\n \u201cAs more cuts happen, liquidity flows into Bitcoin, and altcoins will increase,\u201d he said before adding:<\/p>\n \u201cWe already have major catalysts like ETF approval, pro-crypto administration and regulatory clarity. Once liquidity starts to flow, these catalysts will be priced in, leading to a parabolic Q4 rally.\u201d<\/p>\n \u201cThe last time the FED cut rates, the market pumped very hard,\u201d said crypto analyst Sykodelic.<\/p>\n The last time the FED cut rates the market pumped very hard.<\/p>\n So I honestly do not understand why so many people are bearish about rate cuts?<\/p>\n We are quite literally, almost to the day, in the exact same position we were last time the FED cut rates.<\/p>\n IF we had been mega pumping\u2026 pic.twitter.com\/OWVDcwgnZY<\/a><\/p>\n \u2014 Sykodelic (@Sykodelic_) September 16, 2025<\/a><\/p>\n\n Meanwhile, BitMEX co-founder Arthur Hayes<\/a> spoke about the Fed\u2019s \u201cthird mandate,\u201d which is now being discussed.\u00a0 Advocacy for yield curve control (YCC) signals a potential shift in monetary policy, which is good for Bitcoin<\/a>, he alluded.<\/p>\n Excess liquidity also tends to weaken the US dollar as more dollars chase fewer goods and assets. Bitcoin, often viewed as a \u201cdigital gold\u201d or hedge against inflation, historically benefits from a weaker dollar.<\/p>\n The dollar index (DXY), which measures USD against a basket of currencies, has already weakened<\/a> 12% so far this year.<\/p>\n Speaking on CNBC on Monday, Fundstrat\u2019s Tom Lee said<\/a> the Fed \u201ccan actually reinject confidence by saying we\u2019re back into an easing cycle,\u201d before adding that a rate cut will be a \u201creal improvement in liquidity.\u201d<\/p>\n He predicted that Bitcoin and Ethereum would make a \u201cmonster move\u201d in the last three months of this year.<\/p>\n The post Bitcoin Taps 4 Week High of $117K Ahead of Fed Rate Decision<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin prices have tapped $117,000 twice over the past couple of hours as the asset reached its highest level since August 23, almost four weeks ago. BTC gained 1.5% on the day, and almost 5% on the week, but had retreated slightly to $116,600 at the time of writing on Wednesday morning in Asia. The […]<\/p>\n","protected":false},"author":0,"featured_media":97189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-97188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/97188"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=97188"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/97188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/97189"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=97188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=97188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=97188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Weakening the Greenback<\/h2>\n