Bitcoin Surges 10% on Fed Rate Cut Hopes, Institutional Backing

Bitcoin's latest price was $, in the last 24 hours. The recent surge in Bitcoin's value has been driven by a combination of factors, including softer-than-expected U.S. Producer Price Index data and increased institutional investments. The softer PPI data has fueled speculation of a significant Federal Reserve rate cut, which has historically been a positive catalyst for Bitcoin's price movements. Institutional interest, led by BlackRock's $169 million investment in Bitcoin, underscores the asset's growing appeal as a hedge against market volatility and inflation. This institutional backing has immediate effects on financial markets, reflecting broader market confidence. Key market players note Bitcoin's increasing appeal, driving positive sentiment among large investors. The surge in Bitcoin's value has also led to increased bets on a 50 basis point rate cut by the Federal Reserve, influencing trading volumes across various assets. Market expert Joao Wedson noted that the 2025 bull cycle is showing a more robust market structure and stronger institutional engagement compared to earlier cycles. This suggests significant potential for Bitcoin's market stability, as historical trends of soft PPI data correlate with rallies, validating market concerns. The decline in volatility underscores institutional attention and confidence in Bitcoin's risk profile.

Bitcoin's Bollinger Bands indicator has reached a critical turning point, suggesting that a significant price move may be underway. Crypto trader and analyst Matthew Hyland noted that Bitcoin's Bollinger Bands, which measure the momentum and volatility of an asset within a certain range, have reached their most extreme level in the monthly time frame since its inception in January 2009. Previous contractions in 2012, 2016, and 2020 all preceded explosive price expansions, indicating the potential for the largest move ever seen in Bitcoin's price. This has led to speculation that Bitcoin could be in for a volatile fourth quarter. In addition to the Bollinger Bands indicator, Bitcoin's cup-and-handle pattern targets $300,000, backed by multiple tailwinds. The monthly chart shows that the price broke above the cup-and-handle neckline at $69,000 in November 2024. Bitcoin is still validating the breakout and could rise to complete the maximum distance between the cup’s trough and the neckline, putting the target for 2025–2026 at around $305,000. However, it is important to note that a cup-and-handle pattern does not always guarantee the full upside move. A study by veteran analyst Thomas Bulkowski found that only 61% of these setups reach their expected targets.

Metaplanet, a Japanese company, has upsized its international share offering from 180 million to 385 million shares, raising approximately $1.4 billion to fund additional Bitcoin purchases. The company announced on Sept. 9 that it had increased the offering by 205 million shares in response to strong investor demand, pricing the shares at 553 yen each with a 9.93% discount from the reference price of 614 yen. The enlarged offering will increase Metaplanet’s total outstanding shares from 755.9 million to 1.14 billion shares. President Simon Gerovich confirmed the finalization on social media. Metaplanet plans to allocate 183.7 billion yen for Bitcoin purchases and 20.4 billion yen for its Bitcoin income generation business between September and December. The funding supports Metaplanet’s plan to acquire 210,000 Bitcoin by 2027, representing approximately 1% of Bitcoin’s total supply. Metaplanet currently holds 20,136 Bitcoin, making it Asia’s largest corporate Bitcoin holder and the sixth-largest globally, surpassing Riot Platforms. The company acquired 1,145 BTC in September for approximately $127.2 million. Metaplanet adopted Bitcoin as its primary treasury reserve asset to hedge against risks while pursuing long-term capital appreciation. The company disclosed its transition to Bitcoin treasury management in May 2024 as part of its “Strategic Treasury Transformation and Bitcoin Adoption” policy. Metaplanet’s Bitcoin income generation business recorded 1.904 million yen in sales revenue during the second quarter of the fiscal year 2025. The result represents the company’s efforts to generate yield from its Bitcoin holdings beyond simple appreciation. The share offering structure includes underwriter purchase rights for up to 375 million shares, with an additional 180 million shares available through overallotment options. Final settlement and delivery are scheduled between Sept. 16 and 17. The company’s aggressive Bitcoin accumulation strategy positions it among a growing number of corporations adopting BTC as a treasury asset, following the path established by Strategy and other institutional adopters in the cryptocurrency space.

Crypto Rover shared an announcement highlighting a major step in expanding Bitcoin’s reach beyond traditional internet infrastructure. The demonstration used satellite communications technology to transmit a Lightning Network transaction, showcasing Bitcoin’s resilience and potential for global – and now extraterrestrial – accessibility. This innovation underscores how Bitcoin can operate independently of Earth-based internet providers, reducing reliance on centralized networks. The experiment reportedly leveraged AMSAT-DL equipment, a satellite communication platform, to broadcast the Lightning transaction. The test featured a live interface displaying the transmission process, including signal monitoring and verification of the payment. This milestone highlights the versatility of the Bitcoin Lightning Network, which is designed for fast, low-cost micropayments. By successfully processing a payment through satellite relay, it opens new possibilities for Bitcoin use in remote regions and in scenarios where internet access is unavailable or unreliable. The achievement signals a step toward making Bitcoin truly borderless, ensuring it can remain operational even in extreme conditions – from disaster zones on Earth to future use in space exploration. With this proof of concept, developers and crypto enthusiasts are exploring new frontiers for Bitcoin's utility and accessibility.