Bitcoin's Institutional Push and Fed Bets Fuel Bullish Momentum

Bitcoin price has shown resilience above $111,800 amid growing expectations for a Federal Reserve rate cut and increasing institutional demand. As of September 9, 2025, the cryptocurrency trades near $111,917, with a 0.7% increase in the past 24 hours. Daily trading volume remains at around $25.57 billion, reflecting strong liquidity and positioning as traders anticipate the next market move. Technical indicators, including an RSI of 48 and a bullish MACD crossover, suggest a shift in momentum from bearish to neutral to potentially bullish.

Recent macroeconomic data has further fueled optimism. The U.S. Nonfarm Payrolls report for August revealed only 22,000 jobs added, falling below expectations and signaling weakness in the labor market. Revisions to June’s data also showed job losses for the first time since 2020. These developments have pushed the market's expectations for a September Federal Reserve rate cut to near certainty, with traders now anticipating three cuts by year-end. A reduction in interest rates typically boosts risk-on sentiment and encourages investment in alternative assets such as Bitcoin.

Institutional activity has also contributed to the recent bullish sentiment. Japanese firm Metaplanet added 136 BTC to its holdings, increasing its total to 20,136 BTC, valued at $2.08 billion as of the latest data. The acquisition, worth $15.2 million, demonstrates continued long-term confidence in Bitcoin as a store of value. Meanwhile, El Salvador, the first country to adopt Bitcoin as legal tender, recently purchased an additional 21 BTC, bringing its total holdings to approximately 6,313 BTC, valued at over $706 million.

The demand from institutional investors is further supported by the performance of Bitcoin spot ETFs, which recorded $246.42 million in inflows last week. This marks the second consecutive week of positive flows, reflecting sustained interest from institutional capital despite a slower pace compared to earlier months. Analysts suggest that such inflows are critical to maintaining upward momentum and supporting higher price levels, especially as Bitcoin faces key resistance around $116,000.

Looking ahead, the path for Bitcoin depends largely on whether it can overcome the $116,000 level, a threshold that could set the stage for another rally toward its historical peak of nearly $124,474. A breakout above a long-term descending trendline has already signaled a potential shift in market sentiment. However, a failure to hold above this level could expose support at $105,500–$110,000, where whale activity is concentrated. Traders are closely watching Federal Reserve commentary, ETF inflows, and key price levels for further clues on Bitcoin’s trajectory in the coming weeks.