Bitcoin Price Stabilizes at $109K as Fed Signals End of Tightening
Bitcoin appears to be finding its footing once again as easing macroeconomic pressures lift market sentiment. The flagship cryptocurrency has climbed nearly 2% in the past 24 hours, reaching a daily high of $109,405, according to CoinGecko. This modest rally has also stirred activity across the altcoin market, suggesting a possible shift in momentum.
Fed Pivot Sparks Bullish Hopes
Market watchers are pointing to the Federal Reserve’s recent dovish pivot as a key driver behind the stabilization. Chair Jerome Powell’s comments last week signaled that the central bank may be nearing the end of its quantitative tightening (QT) program, while also opening the door to potential interest rate cuts.
“I think Bitcoin is bottoming here,” said Peter Chung, head of research at Presto Research. “I expect the next move is more likely to be upward rather than downward.”
With QT possibly winding down, many analysts believe risk assets like crypto could benefit from the resulting liquidity boost, easing what had been a significant headwind in recent months.
Geopolitics in Focus: U.S.-China Talks Take Center Stage
Adding to the cautious optimism is the expected softening of U.S.-China trade tensions. An upcoming meeting in Malaysia between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng has the market on edge, with hopes high for progress toward easing the ongoing trade war.
“Bitcoin is extremely sensitive to these talks,” noted Sean Dawson, head of research at Derive. “The largest price moves this year have followed tariff announcements.”
Still, Dawson warns that uncertainty remains. “This is probably a local bottom,” he said. “But a renewed escalation in trade tensions could still trigger downside volatility.”
With a critical inflation report due Friday and the Fed’s next rate decision looming on October 29, the coming weeks could prove pivotal for crypto markets.
