FED Minutes Raise Bitcoin Price

The minutes from the Federal Reserve's (Fed) September meeting provided a significant morale boost to markets. Analysts indicate that the two new interest rate cuts expected before the end of the year could support Bitcoin's (BTC) rally. The minutes revealed that a large majority of policymakers expect two additional interest rate cuts by the end of the year. These developments bolster the forecast that financial conditions will ease in the fourth quarter.

BRN Research Director Tim Misir stated, "The global liquidity cycle is clearly changing direction. Central banks are quietly transitioning from tightening to easing," noting that the likelihood of an interest rate cut in October and another in December is priced in at around 90 percent in the markets. This situation indicates "a simultaneous easing period that could trigger a rally in risk assets." Following the Fed minutes, the price of Bitcoin was trading in the range of $121,000 – $124,000 as of October 9th.

According to The Block data, Bitcoin is stabilizing around $122,000, while investor interest is supported by significant inflows into Spot Bitcoin ETFs (Exchange-Traded Funds). Earlier this week, spot Bitcoin ETFs in the U.S. recorded a record inflow of $1.19 billion in a single day. Function CEO Thomas Chen described the ETF inflows as "the cleanest signal of institutional interest," while Wincent analyst Paul Howard emphasized that these inflows have "created a new price floor that could last until the end of the year."

Markets are predicting a 90 percent probability for a 25 basis point interest rate cut expected at the end of October. Additionally, U.S. President Donald Trump's announcement of a ceasefire agreement between Israel and Hamas has increased risk appetite, supporting interest in Bitcoin. In the short term, Bitcoin's support level is set at $121,000, while the resistance level is $126,000. Breaking through this resistance level could open the way to the $130,000 target.

The open position size in the Bitcoin options market remains above $50 billion. Investors should carefully position themselves in light of these critical price levels and interest rate cut expectations.