Bitcoin taps 4 weeks high from $ 117k for the Fed Rate decision

Bitcoin prices have ticked $ 117,000 twice in the last hours, because it has been actively reaching the highest level since 23 August, almost four weeks ago.

BTC won 1.5% and almost 5% a week on the day, but had withdrawn somewhat in $ 116,600 in Asia on Wednesday morning.

The move comes on the day that the American Federal Reserve is expected to lower this year for the first time this year. This will lead to greater liquidity and a potential cycle of monetary relaxation, which has been historic bullish for risky assets such as Crypto.

Crypto analysts weigh

Economist Alex Krüger said He was ready for the DovishSnit, even though the markets already put the move in price.

“Although my market views have not changed much. I am bullish about shares and bitcoin. The market often forgets how much BTC can move due to recent bias.”

Rate reductions also result in liquidity flow of less risky assets such as treasury accounts for risky assets such as shares and crypto, observed “Ash crypto.”

“As more cuts occur, the liquidity flows into Bitcoin and will increase Altcoins,” he said before he added:

“We already have important catalysts such as ETF approval, pro-Crypto administration and regulatory clarity. As soon as liquidity starts to flow, these catalysts will be priced, leading to a parabolic Q4 rally.”

“The last time that the Fed decreases rates, the market pumped very hard,” said Crypto analyst Sykodelic.

The last time the Fed lowered the rates, the market pumped very hard.

So I really don’t understand why so many people are bearish about tariff reductions?

We are literally, almost to this day, in exactly the same position that we were the last time that the Fed lowered the rates.

If we had been mega pumps … pic.twitter.com/owvdcwgnzy

– Sykodelic (@sykodelic_) September 16, 2025

In the meantime, BitMex Arthur Hayes co-founder spoke about the ‘third mandate’ of the FED, which is now being discussed. Advocacy for Yield Curve Control (YCC) signals a possible shift in monetary policy, which is good for Bitcoin, he referred.

Weaken the greenback

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

The Dollar Index (DXY), which measures USD against a basket with currency, has already weakened 12% this year.

Monday spoken at CNBC, Tom Lee from Fundstrat said The Fed “can actually re -subject confidence by saying that we are back in a relaxation cycle”, before adding that a rate reduction will be a “real improvement in liquidity”.

He predicted that Bitcoin and Ethereum would make a “sample movement” in the last three months of this year.