Bitcoin News Today: Bitcoin's $124k Peak Powered by ETF Inflows and Fed Rate Cuts

Bitcoin Surpassed $124,000 in Mid-August 2025, Driven by ETF Inflows and Fed Rate Cuts, With Price Now at $118,500 in Early October

Bitcoin surged past $120,000 in mid-August 2025, reaching an all-time high of $124,000, fueled by the approval of spot Bitcoin ETFs and anticipation of Federal Reserve rate cuts. By early October 2025, the price had slightly retreated to around $118,500, though the underlying drivers-institutional adoption and macroeconomic factors-remain robust. The U.S. Securities and Exchange Commission (SEC)-approved spot ETFs, launched in January 2024, have attracted billions in inflows, with BlackRock's iShares Bitcoin Trust (IBIT) alone accumulating $57 billion in assets by March 2024. Collectively, Bitcoin ETFs held an estimated 51,500 BTC by December 2024, nearly tripling the monthly Bitcoin mining supply and creating a supply shock that propelled prices upward.

The Federal Reserve's monetary policy shifts also played a critical role. The central bank cut its benchmark rate to a range of 4.00% to 4.25% in September 2025, with further 25-basis-point cuts expected in October and December. Lower interest rates reduced the cost of borrowing and increased liquidity, making risk-on assets like Bitcoin more attractive compared to traditional fixed-income investments. Historical data shows a correlation between rate cuts and crypto rallies; for instance, a 0.25% cut in 2020 preceded a 1,600% surge in Bitcoin. Post-rate cut, Bitcoin derivatives trading volumes spiked to $100 billion in a single day, underscoring the asset's sensitivity to macroeconomic shifts.

The fourth Bitcoin halving in April 2024 further reinforced bullish sentiment by reducing the supply of new Bitcoin entering the market. While the immediate post-halving period saw consolidation, Bitcoin regained momentum, rising approximately 86% by October 2025. Political developments, including the election of a crypto-friendly U.S. administration and pro-Bitcoin statements from prominent figures, added to the narrative of institutional legitimacy. The crypto community, however, remains cautious, with discussions on platforms like Reddit and Crypto Twitter highlighting both euphoria and warnings about volatility.

The surge in Bitcoin's price has had ripple effects across the broader crypto ecosystem. Decentralized finance (DeFi) platforms saw increased liquidity and total value locked (TVL), while Bitcoin-native NFT projects like Ordinals gained traction. Ethereum's upcoming Fusaka upgrade in December 2025 is expected to enhance scalability and reduce Layer-2 rollup costs, further supporting institutional adoption. Meanwhile, stablecoin activity on networks like Tron continued to drive revenue, with the stablecoin market cap exceeding $292 billion by October 2025.

Looking ahead, analysts project a sustained bullish cycle, with some forecasting Bitcoin could reach $200,000 by early 2026. Institutional inflows into spot ETFs, combined with potential regulatory clarity for altcoin ETFs, are seen as key tailwinds. However, risks remain, including regulatory uncertainties and short-term volatility. Investors are advised to monitor Federal Reserve decisions, on-chain activity, and exchange balances as indicators of long-term conviction. The integration of Bitcoin into mainstream finance, coupled with technological advancements in blockchain scalability, positions the asset as a strategic component of global investment portfolios.

Source: [1] Bitcoin Blazes Past $120,000 as ETF Inflows and Fed Rate Cut ... (https://markets.financialcontent.com/talkmarkets/article/breakingcrypto-2025-10-2-bitcoin-blazes-past-120000-as-etf-inflows-and-fed-rate-cut-hopes-fuel-historic-rally) [2] Bitcoin ETF Flows [Table & Chart] (https://bitbo.io/treasuries/etf-flows/) [3] Blockchain Network Revenues Drop 16% in September on Low ... (https://bitnewsbot.com/blockchain-network-revenues-drop-16-in/) [4] VanEck's Critical Report Examines Bitcoin, Ethereum, Solana, and ... (https://commstrader.com/business/crypto/vanecks-critical-report-examines-bitcoin-ethereum-solana-and-tron/) [5] How Ethereum's Fusaka Upgrade Could Be a Game-Changer (https://www.coindesk.com/tech/2025/10/04/how-ethereum-s-fusaka-upgrade-could-be-a-game-changer-asset-manager-vaneck-explains)