Rate cut expectations boost Bitcoin: Is the next bull run on the cards?

While the rate cut itself is largely expected, analysts believe that Powell's forward guidance will play a crucial role in determining whether these levels push higher or lead to a corrective pullback

The crypto market is gaining momentum ahead of the Federal Reserve’s interest rate decision, scheduled to be announced later today. A 25 basis points (bps) cut is almost fully priced in by the markets. Amidst this anticipation, Bitcoin is holding above $117,000, while Ethereum is rebounding toward the $4,500 mark.

 

While the rate cut itself is largely expected, analysts believe that US Federal Reserve Chair Jerome Powell’s forward guidance will play a crucial role in determining whether these levels push higher or lead to a corrective pullback.

 

Vikram Subburaj, CEO of Giottus, said that traders are positioning for a 25 bps cut to initiate the long-awaited easing cycle. “The setup looks constructive as long as $114,000 holds, though near-term whipsaws around the announcement are likely. If stablecoin inflows continue, exchanges have the liquidity to support an upside push once policy clarity emerges,” he explained.

 

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The main challenge, he added, is whether the market can absorb September’s $4.5 billion in token unlocks while still directing flows into Bitcoin and Ethereum. If that happens, the next leg higher could materialise quickly.

Bitcoin eyes $118,400–$119,250

At last check, Bitcoin was trading at $117,310.12, down 1.22 per cent over the past 24 hours. Its daily trading volume surged to $47.92 billion, and its market capitalisation remained steady at $2.23 trillion, maintaining its position as the world’s largest cryptocurrency. During the day, Bitcoin's price fluctuated between $114,813 and $117,283, according to CoinMarketCap.

 

Glassnode data shows that over 44,000 BTC have been withdrawn from exchange reserves so far in September. With fewer coins available to trade, immediate liquidity is tighter—a factor that Edul Patel, CEO of Mudrex, believes could reduce short-term selling pressure.

 

“On the other hand, gold’s rally to all-time highs could further bolster Bitcoin’s momentum. A sustained move above $118,000 would confirm bullish sentiment and pave the way for Bitcoin to test new highs in the coming weeks,” Patel said.

 

Bitcoin has already gained nearly 5 per cent over the past week, having tested resistance around $116,850 after breaking out of a key triangle near $116,200. 

 

From a technical standpoint, Riya Sehgal, research analyst at Delta Exchange, believes that a decisive close above that level could unlock further upside toward the $118,400–$119,250 zone. If Bitcoin faces rejection, support levels are expected at $116,250, $115,200, and potentially down to $112,500.

Ethereum shows short-term bullish momentum

Ethereum, by contrast, is currently lagging behind Bitcoin. Its price action remains compressed within a descending triangle, with $4,470 serving as a key support level and $4,550 acting as the barrier it must overcome to regain momentum. ETF flow data underscores this divergence—Bitcoin funds recorded more than $290 million in net inflows on September 16, while Ethereum ETFs saw outflows exceeding $60 million.

 

At last report, Ethereum was priced at $4,547, up 0.78 per cent over the previous 24 hours, with a daily trading volume of $35.91 billion. During this period, ETH traded in a narrow range between $4,428.33 and $4,554.

 

According to the CoinSwitch Markets Desk, Ethereum's short-term momentum remains positive, with key resistance located around $4,800 and support in the $4,200–$4,400 range.

Altcoin Snapshot

In the broader altcoin market, MYX Finance (MYX) has led the pack with a remarkable 44 per cent rally, according to CoinMarketCap data. Other notable gainers included Story (IP), Aethir (ATH), Sky (SKY), PancakeSwap (CAKE), Filecoin (FIL), Aerodrome Finance (AERO), dogwifhat (WIF), Optimism (OP), SPX6900 (SPX), Lido DAO (LDO), Bonk (BONK), Pendle (PENDLE), Kaspa (KAS), Hyperliquid (HYPE), Immutable (IMX), Sui (SUI), and BNB (BNB), all of which rose by up to 9 per cent today.

 

On the other hand, several altcoins registered notable declines. Pump.fun (PUMP), Ethena (ENA), World Liberty Financial (WLFI), MemeCore (M), TRON (TRX), Toncoin (TON), UNUS SED LEO (LEO), Ondo (ONDO), PAX Gold (PAXG), Tether Gold (XAUt), Pi (PI), and Artificial Superintelligence Alliance (FET) were among the top laggards, falling by as much as 6 per cent on Wednesday. 

Regulatory developments, institutional moves

 

Elsewhere, the US Securities and Exchange Commission (SEC) has delayed its decision on the Truth Social Spot Bitcoin ETF and is now inviting public comments on the proposal. Meanwhile, the UK is expected to finalise a regulatory agreement with the US focused on stablecoins and tighter oversight, according to the CoinDCX Research Team.

 

In other institutional moves, Bitwise has filed for a Stablecoin & Tokenisation ETF that would invest in a mix of crypto assets and stocks. Tuttle Capital has also submitted filings for three new products: the Bonk Income Blast ETF, the Litecoin Income Blast ETF, and the SUI Income Blast ETF. In a notable tech development, Google has announced a collaboration with Coinbase to enable cryptocurrency payments through its upcoming AI-powered payments protocol.