$355M Liquidated as Bitcoin Surges to $115K Amid Fed Rate Cuts

Bitcoin Price Surge and Market Liquidations

Bitcoin's recent price increase led to over $354 million in market liquidations, with $121 million from longs and $233 million from shorts.
The price reached a daily high of $116,317, marking a nearly 3% weekly gain.

Crypto market liquidations in the past 24 hours

Federal Reserve Rate Cuts Anticipated

A Reuters survey indicates that 105 out of 107 economists expect a 25 basis point rate cut by the Federal Reserve on September 17, setting the range to 4.00%-4.25%.
Weak labor market data, such as stalling job growth, has influenced expectations for aggressive rate easing.
Markets are pricing in up to three rate cuts by year-end; some analysts predict a possible 50 bps cut next week.
President Trump pressures Fed Chairman Jerome Powell for more aggressive rate cuts.

Bitcoin Rally vs. Bearish Signals

The CryptoQuant Bull Score Index shows eight out of ten indicators as bearish, with only "demand growth" and "technical signal" bullish.
Past trends show similar bearish signals led to significant price drops, though July saw Bitcoin peak at $122,800 when indicators were favorable.
The CoinGlass Bull Run Index is at 74, suggesting the bull cycle is about three-quarters complete, but lacks confirmation of a peak.

Potential Impact of Fed Decisions on Bitcoin

Despite technical indicators cooling, macroeconomic factors like Fed rate cuts could support Bitcoin's rally.
If the Fed adopts a dovish stance, liquidity might drive risk assets, including Bitcoin, higher.