How will the Fed's interest rate cut affect Bitcoin? It hits a 4-week high!

TÜRKİYE GAZETESİ/Economics Service - Ahead of the US Federal Reserve's critical interest rate decision, cryptocurrencies are experiencing notable activity. Bitcoin tested above $117,000 for the first time since August 23rd, heading towards a nearly four-week high.

In the analysis shared by CoinTR, it was stated that if BTC holds above $115,000, the rise, which could reach $118,500 in the first place, could find support.

HOW DOES THE FED AFFECT BTC?

Analysts say that if the US Federal Reserve (FED) begins a series of interest rate cuts, the cost and return of the dollar may decrease over time, which could support "dollar-priced" assets, including cryptocurrencies, in the long run.

While a quarter-point interest rate cut is expected from the FED today, clues about the future are also important for cryptocurrencies in this sense.

NEW PURCHASE FROM STRATEGY

Meanwhile, institutional purchases of BTC continue. US-based Strategy, known as the largest BTC treasury company, purchased an additional 525 BTC between September 8th and 14th. This brings Strategy's holdings to 638,985 BTC, worth approximately $75 billion.

Another institutional investor , Next Technology, is also planning a $500 million stock sale to purchase new Bitcoin. With 5,833 Bitcoins, Next Technology is among the 15 largest institutional BTC investors.

“SUPPLY SHOCK” WARNING!

Meanwhile, the number of publicly traded companies investing in BTC, which was under 100 at the beginning of the year, has now reached 190. These companies hold more than 5% of the total Bitcoin supply.

US asset management firm Fidelity also predicted that approximately 28% of the total Bitcoin supply could be "out of circulation" by the end of 2025 as a result of institutional investor purchases. According to Fidelity, this trend could also cause a supply shock in the market.

He broke the record in August

Bitcoin reached an all-time high of $124,517 in August. Following profit-taking, BTC fell to the $107,000 level. In today's trading, BTC continues to search for a balance near $116,500. In the first two trading days of this week, $343 million inflows into BTC were generated through US ETFs.