Fed Cuts Rates for First Time Since December - Is This the Trigger for Bitcoin’s $500,000 Supercycle?

The Federal Reserve just made its first rate cut since last December—and crypto markets are already buzzing.

What This Means for Bitcoin

Lower interest rates typically weaken the dollar, making hard assets like Bitcoin more attractive. This move could signal the start of a massive capital rotation into digital gold.

Supercycle Territory?

Traders are betting this could ignite Bitcoin's march toward $500,000. Past rate cuts have preceded major crypto rallies—though past performance doesn't guarantee future results (as the SEC would happily remind you).

The institutional floodgates are opening. BlackRock's ETF inflows hit record highs last week, and microstrategy keeps adding to its stack like there's no tomorrow.

Will traditional finance finally wake up to what crypto natives knew years ago? Or will they keep buying the dip after the pump? Some things never change.

Market Response and Policy Outlook

Fed Chair Jerome Powell stressed that rate moves remain data-dependent, signaling no fixed path for further cuts. While that cautious tone prevented sharper dollar losses, expectations for looser conditions continue to pressure the greenback.

Updated Fed projections flagged higher unemployment and sticky inflation ahead, fueling speculation of a broader easing cycle. The CME’s FedWatch tool had already priced a 96% chance of Wednesday’s reduction, underscoring how widely expected the decision was.

Two standout statements from yesterday:

Fed's Powell: The case for there being a persistent inflation outbreak are less

Fed's Powell: Labor market is softening, don't need it to soften more, don't want it to

Powell reiterated that he expects inflation to instead be a one-time…

Markets now turn to upcoming labor and inflation reports, which will help determine the pace of future moves. Traders are also closely watching Powell’s commentary for subtle hints of policy direction.

Key Market Takeaways:

• Fed cut rates 25bps, first since December
• Trump pressures central bank for deeper easing
• Inflation at 2.9%, still above target
• Gold hit record highs of around $3,700 before the Fed rate.
• Bitcoin steady near $116,000

Bitcoin Technical Outlook and Forecast

On the technical front, the BTC/USD pair is consolidating NEAR $117,200 within a rising wedge structure on the 2-hour chart. The wedge typically signals caution, yet higher lows and sustained support above the 50-SMA at $116,000 keep momentum constructive. The 200-SMA at $113,800 further underpins the bullish structure.

Candlesticks show strong rejection wicks on dips, suggesting buyers continue to absorb supply. RSI sits at 59, cooling from recent highs but not in overbought territory. A bullish engulfing candle near $115,800 earlier this week confirmed strong demand at lower levels.

#Bitcoin is consolidating near $117,200 in a rising wedge. Key support at $116,000 (50-SMA) with higher lows intact. RSI steady at 59. #BTC #Crypto pic.twitter.com/CAlpEt5z1Q

If BTC breaks above $117,600, a path toward $118,500 and $119,350 opens, with potential for $120,000 short term. A breakdown below $116,000 could invite pressure toward $114,400 and $113,200. For traders, the setup supports a cautious long bias while above key support.

A break above $117,600 opens $118,500–$119,350. Losing $116,000 risks $114,400–$113,200. Bias favors cautious longs aiming for $120K. #Bitcoin #BTC #CryptoTrading

Longer term, the steady pattern of higher lows keeps the door open for a rally toward $130,000 and even discussions of a potential $500,000 supercycle, should macro liquidity conditions align with growing institutional demand.

Presale Bitcoin Hyper ($HYPER) Combines BTC Security With Solana Speed

Bitcoin Hyper ($HYPER) is positioning itself as the first Bitcoin-native Layer 2 powered by the Solana VIRTUAL Machine (SVM). Its goal is to expand the BTC ecosystem by enabling lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation.

By combining BTC’s unmatched security with Solana’s high-performance framework, the project opens the door to entirely new use cases, including seamless BTC bridging and scalable dApp development.

The team has put strong emphasis on trust and scalability, with the project audited by Consult to give investors confidence in its foundations.

Momentum is building quickly. The presale has already crossed $16.5 million, leaving only a limited allocation still available. At today’s stage, HYPER tokens are priced at just $0.012935—but that figure will increase as the presale progresses.

You can buy HYPER tokens on the official bitcoin Hyper website using crypto or a bank card.