Bitcoin Soars to 4-Week High of $117K as Fed Decision Looms

Bitcoin just blasted past $117,000—its highest level in a month—right as the Federal Reserve prepares to announce its latest interest rate call. Traders are stacking satoshis, betting that digital gold will outpace traditional finance once again.

Timing is Everything

The surge isn’t random. With the Fed poised to reveal its next move, crypto markets are pricing in potential volatility—or opportunity, depending who you ask. Bitcoin’s rally suggests investors are hedging against fiat uncertainty, turning to decentralized stores of value instead of waiting for central bankers to make up their minds.

Beyond the Headline Number

$117K isn’t just a big round number—it’s a psychological threshold. Breaking through four-week resistance signals renewed institutional interest and retail FOMO, especially as macroeconomic jitters push more capital toward non-traditional assets. Who needs yield curves when you’ve got a finite supply cap?

What’s Next?

All eyes are on Jerome Powell. A dovish tone could send Bitcoin racing toward $120K; a hawkish one might trigger a short-term dip. Either way, crypto isn’t waiting for permission to move. It’s almost like the market learned nothing from the last time the Fed tried to play inflation whack-a-mole.

Crypto Analysts Weigh In

Economist Alex Krüger said he was ready for the dovish cut despite markets already pricing the move in.

“Though my market views have not changed much. I’m bullish on equities and Bitcoin. The market often forgets how much BTC can move due to recency bias.”

Rate cuts also result in liquidity FLOW from less-risky assets like treasury bills to high-risk assets like stocks and crypto, observed ‘Ash Crypto.’

“As more cuts happen, liquidity flows into Bitcoin, and altcoins will increase,” he said before adding:

“We already have major catalysts like ETF approval, pro-crypto administration and regulatory clarity. Once liquidity starts to flow, these catalysts will be priced in, leading to a parabolic Q4 rally.”

“The last time the FED cut rates, the market pumped very hard,” said crypto analyst Sykodelic.

The last time the FED cut rates the market pumped very hard.

So I honestly do not understand why so many people are bearish about rate cuts?

We are quite literally, almost to the day, in the exact same position we were last time the FED cut rates.

IF we had been mega pumping… pic.twitter.com/OWVDcwgnZY

— Sykodelic (@Sykodelic_) September 16, 2025

Meanwhile, BitMEX co-founder Arthur Hayes spoke about the Fed’s “third mandate,” which is now being discussed.  Advocacy for yield curve control (YCC) signals a potential shift in monetary policy, which is good for Bitcoin, he alluded.

Weakening the Greenback

Excess liquidity also tends to weaken the US dollar as more dollars chase fewer goods and assets. Bitcoin, often viewed as a “digital gold” or hedge against inflation, historically benefits from a weaker dollar.

The dollar index (DXY), which measures USD against a basket of currencies, has already weakened 12% so far this year.

Speaking on CNBC on Monday, Fundstrat’s Tom Lee said the Fed “can actually reinject confidence by saying we’re back into an easing cycle,” before adding that a rate cut will be a “real improvement in liquidity.”

He predicted that Bitcoin and ethereum would make a “monster move” in the last three months of this year.