Investors Position for #Bitcoin Rally Amid Fed Rate Cuts and Bitcoin Act Optimism

Investors are eyeing a Bitcoin rally as potential Federal Reserve rate cuts could unlock $7.2 trillion in capital. The Bitcoin Act may accelerate adoption by committing the U.S. to acquire 1M $BTC

over five years.

Federal Reserve Rate Cuts Could Unlock Capital for Bitcoin

Markets are increasingly pricing in a dovish shift from the Federal Reserve and its Federal Open Market Committee (FOMC). Expectations center around a 25–50 basis point interest rate cut, a move that could inject significant liquidity into risk assets, including cryptocurrencies.

Historically, rate cuts serve as catalysts for equities and alternative assets, and Bitcoin (BTC) often emerges as a primary beneficiary. Lower borrowing costs and increased liquidity encourage investors to rotate capital into digital assets, seeking higher returns amid a low-yield environment.

Kevin Rusher, founder of real-world asset platform RWA, noted: “It’s not the short-term market reaction that matters – it’s the fact that resuming the cutting cycle begins to unlock the $7.2 trillion sitting in money market funds, as well as the trillions tied up in outstanding mortgage debt.”

This potential liquidity surge has coincided with Bitcoin briefly crossing $117,000 for the first time since late August, reflecting early positioning ahead of potential policy action.

The Bitcoin Act Could Cement #BTC as a Macro Asset Class

Alongside monetary policy, legislative developments are fueling optimism. The proposed Bitcoin Act would commit the U.S. government to acquiring one million Bitcoin over five years, providing both a structural and symbolic endorsement of BTC as a macro asset class.

Bitcoin Hits $115,812 as Fed Rate Cuts Loom: Rally or Stagflation Trap?

Analysts believe the act could:

Accelerate institutional inflows into Bitcoin

Broaden adoption across demographics

Integrate Bitcoin into the wider financial system...

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