Bitcoin Surges Past $111K as Traders Bet on Fed Rate Cut and Renewed Liquidity

Bitcoin reclaimed the $111,000 mark early Monday, rallying alongside broader crypto markets as investor sentiment brightened on expectations of improved macroeconomic conditions.

The world’s largest cryptocurrency gained 3.16% in the past 24 hours to reach $111,321, marking its first close above $111,000 in nearly a week. Ether followed suit, jumping 3.6% to $4,036 and reclaiming the $4,000 threshold. Other major tokens also advanced, with BNB up 3.91%, XRP rising 3.54%, and Solana adding 2.68%, signaling a renewed wave of optimism across the digital asset space.

Market participants pointed to institutional inflows into spot crypto ETFs and improving liquidity conditions as key drivers of the rebound. Many traders viewed last week’s sell-off as a chance to re-enter the market at more attractive prices.

The rebound comes after several weeks of macro-driven volatility, triggered by geopolitical tensions and renewed concerns about the stability of U.S. regional banks. Additionally, U.S. President Donald Trump’s announcement of new tariffs on China added pressure to risk assets earlier in the month.

Despite lingering uncertainties, sentiment has turned positive as markets increasingly anticipate a 25-basis-point interest rate cut by the U.S. Federal Reserve at its next meeting. The CME Group’s FedWatch Tool shows a near-99% probability of a rate reduction in October, reflecting widespread expectations of policy easing.

Traders are now closely watching upcoming U.S. inflation and manufacturing data, as well as employment and retail figures from Australia, to gauge the next direction for risk assets. A softer macro outlook could further support Bitcoin’s upward momentum by boosting liquidity and risk appetite.

Technically, analysts say key support lies near $107,000, with resistance zones forming between $111,700 and $115,500. A sustained move above $111,000 could trigger a short squeeze and extend Bitcoin’s rally, while a break below support might invite renewed selling pressure.

Still, caution persists. Geopolitical risks, including escalating tensions between Washington and Beijing ahead of a planned Trump–Xi meeting later this month, continue to cast a shadow over investor confidence.

For now, Bitcoin’s bounce above $111K underscores the market’s growing belief that monetary easing and improving liquidity could reignite digital asset momentum heading into the final quarter of 2025.