After dipping as low as $107,270 earlier this week, Bitcoin has clawed its way back into the $112K range. Exchange order books showed thick layers of ask liquidity waiting there, and BTC’s rebound tore through some of it before stalling under $114K. Liquidation data suggests short-sellers got rinsed, with open interest and leverage resetting.
All this is happening just two weeks out from a likely interest-rate cut by the U.S. Federal Reserve on September 17. Markets are already pricing in the move with 95% certainty, according to CME’s FedWatch tool. Traders know that easier monetary policy is rocket fuel for risk assets, and Bitcoin is positioning itself as the apex speculative hedge.
QCP Capital, a trading desk that specializes in macro-crypto strategy, sees the environment tilting in Bitcoin’s favor. Tariffs and policy uncertainty may push inflation expectations higher, but that also weakens the U.S. dollar. A softer dollar usually means harder money assets like gold — and now Bitcoin — outperform.
Bitcoin is back to just under $112,000, Source: BNC
Gold just printed fresh all-time highs at $3,567 per ounce. The yellow metal has long been the ultimate hedge, but Bitcoin is increasingly being talked about in the same breath. Both assets thrive when investors are nervous about central banks. The difference? Gold is the 5,000-year-old incumbent; Bitcoin is the insurgent with asymmetric upside.
If gold at ATHs is any indication, capital is hunting for hedges. Bitcoin’s narrative as “digital gold” is getting stronger every time macro volatility flares up. With the Fed about to add fuel to the fire, the stage looks set for another leg higher.
To be fair, plenty of analysts still see a return to $100K as not just possible, but imminent. Bitcoin’s price structure has been messy, and macro events can cut both ways. But right now, price action, liquidity data, and cross-asset signals are siding with the bulls. Is it time to buy Bitcoin for a bullish Q4?
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