Bitcoin Soars to $120,000: Fed Rate Cut Incoming – Buy Now?

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<a href="https://thbusd.com/btc-usd/">Bitcoin</a> Nears $120,000 Amid Near-Certain Fed Rate Cut and Liquidity Tailwinds | US Crypto News

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October is shaping up to be a critical month for markets. There’s a lot of uncertainty, trading volume is low, and investors are surprisingly seeking safety in assets like Bitcoin. Everyone’s on edge, and the odds seem to be changing, putting Bitcoin back in the spotlight.

Crypto News of the Day: Bitcoin Approaches $120,000 as Markets Brace for Near-Certain October Rate Cut

Bitcoin is currently trading around $118,746, getting closer to the $120,000 mark. This increase is happening as investors buy Bitcoin, believing it will benefit from more relaxed financial policies.

Experts now believe there’s a very high chance – almost certain – that the Federal Reserve will lower interest rates in October, likely to between 3.75% and 4.00%.

A key factor driving recent market changes was Wednesday’s report on employment. The ADP report showed that private businesses actually lost 32,000 jobs in September. This was much worse than expected – analysts had predicted a gain of 51,000 jobs – and represents the largest drop in employment since March of last year.

Adding to existing worries, the number of jobs added in August was actually a decrease of 3,000, after initially being reported as a gain of 54,000. This marks the second month in a row that US private-sector employment has fallen.

Investors are currently operating with limited information due to the recent government shutdown and a lack of key economic data. Important reports from the Bureau of Labor Statistics, like the jobs report released on Fridays, are currently on hold. If the shutdown continues, even the report on inflation, scheduled for October 15th, might be delayed.

Continued investment into Bitcoin ETFs is still supporting demand. However, the market could still fall if the Federal Reserve doesn’t act decisively.

Traditional financial news outlets report that Deutsche Bank and ING have warned about the potential economic impact of continued business closures. Oxford Economics estimates that each week of these closures could reduce GDP by as much as 0.2%. Despite these concerns, there’s still a generally optimistic outlook due to the time of year.

Bitcoin is nearing $120,000 after a significant increase of over 4%, reaching a seven-week high. This rise is happening as the market experiences its typical October gains and traders are anticipating potential interest rate cuts by the Federal Reserve, fueled by recent weaker economic data and the possibility of a government shutdown. The positive trend isn’t limited to Bitcoin, with other cryptocurrencies like Ethereum, Solana, and XRP also showing gains, though they are facing some resistance levels.

— Ask Perplexity (@AskPerplexity) October 2, 2025

Safe-Haven Flows, Liquidity, and the Epstein Angle

Although Bitcoin is currently getting most of the attention, experienced analyst Ira Epstein points out that the factors influencing gold and silver prices are also important to consider.

In a report released on October 1st, Epstein explained that expectations of interest rate cuts by the Federal Reserve, combined with political gridlock, were causing investors to move money into safer investments.

“I expected that we’d get something of a rally in gold and silver,” he said.

I’ve been observing increased market volatility, and while there’s some positive movement, I think caution is still necessary. What I’m seeing is that bond and note markets are also experiencing demand, which seems to reflect the wider uncertainty surrounding US economic data and policy decisions. It suggests investors are hesitant given the gaps in available information.

Bitcoin investors will notice a clear connection between how easily the asset can be bought and sold, and its recent performance. Like gold, Bitcoin is rising in value thanks to a few key factors: a weaker dollar, a strong bond market, and investors moving money into safer investments.

This time, Bitcoin’s price swing is bigger than in previous downturns. The combination of money flowing into Bitcoin ETFs and the expectation that the Federal Reserve will act is making the price move more dramatically. However, some experts caution that this price increase might not last.

According to Oxford’s Ryan Sweet, a brief shutdown of the government likely won’t have a big impact on the stock market. However, a longer shutdown combined with the significant job cuts President Trump has mentioned could seriously harm the economy, Fortune reports.

If that situation happens, it might push the Federal Reserve to lower interest rates further. However, it could also make investors avoid risk, which would likely decrease the value of more volatile investments like Bitcoin.

As a researcher following Bitcoin, I’m seeing strong signals that October could be a pivotal month for its acceptance by institutional investors. With Bitcoin approaching $120,000 and increasing financial support, we might be on the verge of another major step forward in its mainstream adoption.

Investors are starting to see Bitcoin less as a risky gamble and more as a secure asset, similar to gold, especially during times of economic or political instability, although future regulations still create some uncertainty.

Chart of the Day

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Crypto Equities Pre-Market Overview

Company At the Close of October 1 Pre-Market Overview
Strategy (MSTR) $338.41 $344.40 (+1.77%)
Coinbase (COIN) $346.17 $352.00 (+1.68%)
Galaxy Digital Holdings (GLXY) $35.83 $37.04 (+3.38%)
MARA Holdings (MARA) $18.61 $19.02 (+2.20%)
Riot Platforms (RIOT) $18.93 $19.20 (+1.43%)
Core Scientific (CORZ) $17.97 $18.24 (+1.50%)

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2025-10-02 19:02