Bitcoin News Today: Bitcoin's Bull Run Driven by Fed Cuts and ETF Inflows

Bitcoin traders remain bullish despite recent price pullbacks, with analysts and market data pointing to continued momentum fueled by Federal Reserve rate cuts and strong institutional demand. The U.S. central bank's 25-basis-point rate reduction in October 2025, the first since December 2022, has reignited optimism in the crypto market. Bitcoin (BTC) surged past $120,000 in early October, marking its highest level since mid-August, while spot Bitcoin ETFs recorded $2.2 billion in weekly inflows, reversing prior outflows and signaling growing institutional confidence.

The Fed's dovish stance, with a 92% probability of further rate cuts by year-end according to CME FedWatch data, has positioned Bitcoin as a key beneficiary of accommodative monetary policy. Lower interest rates reduce the opportunity cost of holding non-yielding assets like Bitcoin, while a weaker U.S. dollar enhances its appeal as a hedge against fiat devaluation. Historical patterns reinforce this dynamic: Bitcoin's rallies in 2019 and 2020 followed Fed easing cycles, and analysts like Fundstrat's Tom Lee predict a potential $200,000 price target by year-end if the Fed continues cutting rates.

Institutional adoption is accelerating, with spot Bitcoin ETFs attracting over $1.1 billion in inflows over 10 days as of September 2025. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, purchasing 3,930 BTC ($466.5 million) in a single day. The ETF inflows, combined with a decline in retail selling pressure and accumulation by medium-sized holders, have bolstered Bitcoin's resilience. The 1.1 million BTC linked to Bitcoin's creator, Satoshi Nakamoto, is now valued at over $130 billion, reflecting the asset's enduring appeal.

Altcoins also show signs of rotation, with the Altcoin Season Index hitting 60s, suggesting rising momentum for smaller tokens. However, volatility remains a concern. Derive's Sean Dawson warns of a 20% chance Bitcoin could dip below $100,000 if sentiment shifts, while XRP and Solana face sharper corrections due to triple witching events and macroeconomic uncertainty.

Technical indicators highlight both opportunities and risks. Bitcoin's rebound from a wedge pattern and its position above the 20-week exponential moving average ($108,500) support a bullish case, with a $129,000 target if it breaks $115,000 resistance. Conversely, a breakdown below $120,000 could trigger a retest of $111,000 or $105,000 levels. The broader market's "Uptober" narrative-historically bullish for crypto-is gaining traction, with Ethereum (ETH) and Dogecoin (DOGE) also showing positive momentum.

Despite the optimism, risks persist. Stagflation fears, regulatory scrutiny, and macroeconomic headwinds could temper gains. A larger-than-expected 50-basis-point cut, though less likely, might signal deeper economic troubles, increasing market volatility. Additionally, Bitcoin's historical post-peak declines-such as its drop from $69,000 in 2021 to $15,500 in 2022-serve as cautionary reminders for investors.

The Fed's upcoming policy decisions and economic data will remain pivotal. A dovish tone from Chair Jerome Powell, who emphasized "risk management" in his September 17 press conference, could extend the rally. Conversely, a hawkish pivot might dampen enthusiasm. For now, Bitcoin's institutional-friendly environment and macro-driven tailwinds suggest a continuation of its upward trajectory, albeit with caution for near-term volatility.

Source: [1] Bitrue (https://www.bitrue.com/blog/fed-rate-cut-october-2025)

[2] CoinCentral (https://coincentral.com/bitcoin-btc-price-federal-reserve-rate-cut-could-drive-rally-to-200k/)

[3] Forbes (https://www.forbes.com/sites/greatspeculations/2025/09/15/how-bitcoin-price-reacts-to-fed-rate-cuts/)

[4] Coindesk (https://www.coindesk.com/markets/2025/09/16/fed-cuts-fed-fund-rate-by-25-basis-points-in-first-reduction-since-december)

[5] Bitcoin Magazine (https://bitcoinmagazine.com/markets/fed-rate-cut-boosts-bitcoin-price-ahead-of-q4-melt-up)

[6] FXStreet (https://www.fxstreet.com/cryptocurrencies/news/top-3-price-prediction-bitcoin-ethereum-ripple-btc-eth-and-xrp-pause-after-strong-rallies-202510100330)

[7] Coinspeaker (https://www.coinspeaker.com/bitcoin-120k-etf-inflows-181k-forecast/)

[8] CoinCentral (https://coincentral.com/btc-price-climbs-above-120k-as-bitcoin-etfs-see-2-2b-inflows/)

[9] Coinlineup (https://coinlineup.com/bitcoin-surpasses-120k-etf-inflows/)