Bitcoin, the world’s largest cryptocurrency by market cap, is making headlines again after surging above the $115,500 price.
The crypto asset reached a three-week high of $116,314 overnight before slightly pulling back to $115,126 at the time of writing this report.
This breakout reflects a combination of economic signals, institutional activity, and technical patterns fueling optimism in the crypto market. Bitcoin’s latest rally coincides with U.S. stock indices hitting fresh record highs, as expectations grow for the Federal Reserve to begin cutting interest rates.
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While U.S. dollar inflation remains around 2.7%, Bitcoin’s inflation rate is much lower, between 0.8–0.9%, making it an increasingly attractive long-term hedge against fiat currency depreciation.
ETF Inflows Highlight Strong Institutional Demand
A major driver of Bitcoin’s recent strength has been significant inflows into spot Bitcoin ETFs. On September 10, $742 million in inflows were recorded, and the next day, another $186.5 million in inflows were recorded.
This marks one of the strongest two-day buying streaks in weeks, signaling that large investors are steadily accumulating Bitcoin, not exiting the market. Currently, ETFs represent 3.7% of the entire crypto market cap, providing a liquidity foundation that supports sustained price growth.
With just five days remaining before the Fed’s interest rate decision, market data shows a 100% probability of a rate cut, with some analysts expecting a more aggressive 50 basis-point reduction.
Lower borrowing costs typically fuel risk assets like Bitcoin, while a weakening U.S. dollar indexmakes BTC more appealing to international buyers.
This has strengthened the correlation between Bitcoin and equities, further boosting sentiment.
Technical Breakout Hints at Higher Targets
After weeks of trading below $112,000, Bitcoin has successfully broken past the $115,000 resistance level, which had capped its progress in recent attempts.
Adding to the bullish case, a MACD golden cross has appeared on the daily chart, a signal that historically preceded a 40% surge in price. If this pattern repeats, BTC could target $160,000 in the coming months. Some analysts, like Tom Lee of BitMine, see the potential for $200,000 by 2025, provided rate cuts continue.
Altcoins Gain Momentum
While Bitcoin leads, altcoins are also benefiting from rising risk appetite. Ethereum (ETH) was up 2.28% to $4,502 with strong weekly gains. Solana (SOL) surged 5% in 24 hours, 15% over the week.
Dogecoin (DOGE) gained 3% to $0.26, totaling 21% weekly gains. BNB traded above $900. This rotation reflects recovering global liquidity, with capital flowing from gold to equities and now into crypto. Analysts expect a local market top in late 2025, followed by a blow-off rally in early 2026.
According to Mike Novogratz, CEO of Galaxy Digital, Bitcoin’s sideways trading has been partly due to treasury firms diversifying into altcoins. “Bitcoin’s at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot”, he said.
Analyst Warning: Bitcoin Faces Key Resistance
Despite bullish signals, not all analysts are convinced the rally is secure. Joao Wedson, founder of Alphractal, cautioned that BTC’s rise could face a “rug pull” scenario if it fails to decisively clear $116,000 resistance.
A drop below $110,000 could push Bitcoin toward the $105,000 liquidity zone. Wedson is also monitoring broader market indicators, such as Bitcoin dominance, Buy/Sell Pressure Delta, Open Interest, and on-chain reversal signals, before fully confirming a bullish trend.
Future Outlook
Bitcoin’s rally above $115,500 reflects strong institutional accumulation, favorable macro trends, and improving technicals. However, the battle at $116,000 resistance remains crucial.
The crypto market now awaits the Federal Reserve’s rate decision next week. A 25-basis-point cutis widely expected. A 50-basis-point cut could trigger strong bullish momentum across Bitcoin and altcoins.
With bond yields easing and unemployment rising, macroeconomic conditions favor a shift toward looser monetary policy an environment historically supportive of Bitcoin’s growth.
If ETF inflows continue and the Fed delivers a meaningful rate cut, Bitcoin could be on track to challenge $160,000, setting the stage for an even more dramatic rally heading into 2025.