Bitcoin News Today: Bitcoin's $124K Surge: Fed Easing Drives Crypto's Macroeconomic Makeover

Bitcoin surged past $124,000 on September 17, 2025, as Federal Reserve minutes revealed a strong expectation for additional rate cuts in the coming months, reigniting bullish sentiment in the cryptocurrency market. The U.S. Federal Open Market Committee (FOMC) delivered a 25-basis-point cut in its latest meeting, with Chair Jerome Powell signaling a dovish stance amid slowing economic growth and persistent inflation concerns. This move, combined with market anticipation of further easing, has positioned Bitcoin as a beneficiary of expanded liquidity and shifting risk appetite Is Bitcoin Price Set For Next Rally? - Forbes^[1].

Historical data suggests a nuanced relationship between Fed policy and Bitcoin's price trajectory. During the 2019 rate-cut cycle, Bitcoin initially dipped to around $7,000 before stabilizing, while the 2020 emergency cuts-paired with unprecedented monetary stimulus-propelled the asset to an all-time high of $28,000 by year-end. Analysts note that Bitcoin's performance during periods of sustained low rates, such as 2020–2021, was driven by a combination of dollar depreciation, increased institutional adoption, and a "risk-on" investor sentiment Will Fed Rate Cuts Trigger a Bitcoin Rally in 2025? Here’s What ...^[2].

The current rally, however, faces headwinds. Despite the 25-basis-point cut, Bitcoin briefly fell below $115,000 in early trading, reflecting cautious positioning among traders who had already priced in the decision. Powell's mixed messaging-acknowledging economic softness but cautioning against overestimating the impact of near-term cuts-has limited immediate upside. Over $105 million in crypto liquidations occurred within 30 minutes following the Fed's announcement, underscoring the market's sensitivity to central bank signals Bitcoin Price Prediction After FED Rate Cut | BTC Forecast 2025^[3].

Key drivers of Bitcoin's potential continued ascent include a weaker U.S. dollar, which enhances its appeal as an inflation hedge, and the growing allocation of Bitcoin by institutional investors via newly launched ETFs. The approval of spot Bitcoin and Ether ETFs in early 2024 has streamlined institutional access, with inflows into these funds serving as a critical indicator of broader adoption. Additionally, the Fed's gradual approach to rate cuts-unlike the aggressive 2020 intervention-may prolong the buildup of liquidity, favoring sustained, rather than explosive, price gains Is Bitcoin Price Set For Next Rally? - Forbes^[1].

Risks remain, however. A shallow cutting cycle or a Fed pivot toward hawkish policies could undermine Bitcoin's momentum. Macroeconomic headwinds, such as a deeper-than-anticipated economic slowdown, might dampen risk appetite. Regulatory uncertainties, particularly in the U.S., also pose a threat. Furthermore, Bitcoin's larger market cap compared to previous cycles means achieving similar percentage gains will require significantly higher capital inflows Will Fed Rate Cuts Trigger a Bitcoin Rally in 2025? Here’s What ...^[2].

Looking ahead, investors are monitoring three key variables: the pace of Fed rate cuts, ETF inflows, and global equity market performance. If the Fed signals a multi-cut path and maintains a dovish tone, Bitcoin could test resistance levels above $125,000, with institutional demand and dollar weakness acting as tailwinds. However, a hawkish reversal or unexpected macroeconomic shocks could trigger renewed volatility. For now, the interplay between monetary policy and crypto markets underscores Bitcoin's evolving role as a macro-sensitive asset in a post-pandemic financial landscape Bitcoin Price Prediction After FED Rate Cut | BTC Forecast 2025^[3].