Bitcoin (BTC) rose 0.8% to $117,055, returning
to the crucial $117,000–$120,000 resistance zone just ahead of the Federal
Reserve’s interest rate decision. A 25 bp cut is already priced in after
cooling U.S. labour data and softer August inflation boosted sentiment last
week, lifting BTC by 5.7% to $116,599.
Institutional flows remain supportive. Large
investors bought $1.20 billion worth of Bitcoin ETF shares last week across
IBIT (BlackRock), FBTC (Fidelity), and GBTC (Grayscale). This week, however,
inflows slowed to $264.7 million as traders await the Fed statement.
Breaking above $120,000 will likely require
more than the expected 25 bp cut. Markets want dovish guidance from Jerome
Powell and a dot plot projecting three rate cuts in 2025 instead of two. That
would likely be enough to push BTC through resistance and revive the rally
toward the extreme $155,000–$165,000 target.
Meanwhile, Dogecoin (DOGE) could get U.S. ETF
approval as early as September 18, potentially lifting the token another 30% to
around $0.3500. Bitwise CIO Matt Hougan added to the buzz, hinting that the SEC
is preparing universal listing standards for crypto ETFs, a move that could
“blow the market wide open” by streamlining approvals.
From a technical standpoint, BTC’s setup is
unchanged: $107,000–$110,000 remains rock-solid support, while
$117,000–$120,000 is the key barrier. Clearing it would signal the next stage
of the rally.