The Fed has reduced key rate by 25 basis points Range of 4-4.25%. More importantly, authorities had shown that two more cuts could continue this year, allowing interest rates to be reduced to 3.5-3.75%. On paper, lower interest rates reduce borrowing costs, promote liquidity, and drive investors into risky assets. Bitcoin often thrives in these liquidity-driven environments. This is because it is treated like a hedge against both monetary policy and political uncertainty.
At the same time, split votes within the Fed committee illustrate a dilemma. Although inflation is still above target, the risk of unemployment is increasing. This uncertainty means that the market remains unstable. When it comes to Bitcoin prices, it usually leads to a more sharp move than flat trading.
Separately, in addition to the sights surrounding the Fed’s decision, a 12-foot golden statue of President Donald Trump, holding Bitcoin, was temporarily installed outside the Capitol. The display, funded by a group of cryptocurrency investors, was designed to time to coincide with the announcement and spark discussions about the role of digital currency in modern finance.
Organizers frame it as a symbol of the intersection of politics and financial innovation, highlighting how Bitcoin is tied to the country’s economic conversation. The unusual installation reminded me that Crypto is no longer a bystander, but part of a broader discourse about policy and financial power.
Current technology setup
Looking at the daily chart of BTC prices, the price trades at around USD 116,800. After weeks of sideways action in August and early September, Bitcoin has broken over the middle Bollinger band, and is now heading towards the upper band, close to 118,000 USD. This suggests building bullish momentum.
Fibonacci’s retracement levels plotted above the current price highlight the potential zone of resistance. The closest challenge is around US$120,000, with expansion targets of US$124,000 and US$128,000. As momentum accelerates, the psychological mark of 140,000 USD will appear.
Support remains at around $112,000, matching the Bollinger band at the bottom with the recent integration. A break below that would expose USD 108,000, possibly lowering sentiment.
Macros satisfy chart actions
Historically, Bitcoin price increases have tended to gain traction when the Fed is eased. Investors are reassigned to risk-on trading as actual yields fall. But this time political pressure on the Fed adds a layer of unpredictability. Trump’s attempts to restructure the Fed committee in search of deeper cuts indicate that the agency is under stress.
If the Fed continues to cut more than this year, the background could be similar to the liquidity wave of the 2020s, pushing BTC into price discovery. However, in the short term, Bitcoin still needs to clear technical resistance levels before the bull controls it.
What can I see next?
A short-term direction on whether BTC prices can close a day’s candles that exceed USD 117,500-118,000. The sustained strength here opens the door to under US$120,000. However, if you don’t beat this band, you could trap Bitcoin in another integrated range of 112,000-118,000 USD.
Macro events promote volatility. Traders should be aware of the Fed’s communications, inflation prints, and labor market data. If unemployment rates are slashed faster than expected, the Fed could accelerate its easing pathway, which almost certainly will boost Bitcoin.
Bitcoin Price Prediction: Where do BTC prices start here?
Short term, $Bitcoin price is set to test USD 120,000. If resistance becomes apparent after a conviction, the next leg to 124,000-128,000 USD could unfold quickly. On the downside, if the Bulls are unable to maintain their current momentum, they will still be able to pull back to USD 112,000.
In the medium term, as liquidity returns and the Fed tilts, odds are skewed towards Bitcoin’s highs. The path is choppy, but the structure suggests that $BTC could challenge the 130,000-140,000 USD range by the end of the year if the macro condition maintains support.
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