Fed Rate Cut Odds Surge to 97% as CPI Falls to 3%! Is Bitcoin Heading Up?

A new wave of optimism has swept through global markets after the latest inflation report from the United States showed a cooler reading of 3%. 

The data came in slightly below expectations, and traders now see a 97% chance that the Federal Reserve will finally cut interest rates. 

Bitcoin quickly reacted by climbing above $111,000, as many investors began positioning for what could be the start of another major rally. Some analysts believe that a path toward $130,000 may be forming if market conditions stay supportive.

Cooling Inflation Brings Relief and Renewed Confidence

The September Consumer Price Index revealed that inflation has slowed more than expected, rising 3% year-on-year. 

Core inflation, which excludes food and energy prices, increased by only 0.2% in the past month. These results gave markets a sense of relief and shifted attention back to the Federal Reserve’s next move.

Traders on Polymarket wasted no time reacting. The probability of a 25-basis-point rate cut surged to 97% immediately after the announcement. 

A lower inflation rate signals that the Fed could soon loosen its policy, creating an environment where investors once again seek returns from higher-risk assets. Bitcoin, often viewed as both a hedge and a growth asset, benefits greatly from such transitions.

Farzam Ehsani, the CEO of VALR, explained that Bitcoin is in a unique position because it plays both sides of the market cycle. When uncertainty rises, people turn to it as a store of value. 

When confidence returns, it becomes a growth asset that attracts capital seeking new opportunities. This dual appeal helps Bitcoin thrive in shifting economic climates like the one developing now.

With inflation cooling, liquidity could begin to expand once again, drawing institutional and retail investors back into digital assets. 

If this pattern continues, Bitcoin could build enough momentum to challenge and possibly exceed the $120,000 barrier, opening a realistic path toward $130,000 by the start of 2026.

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Traders Move Fast as Markets Prepare for the Fed Pivot

Following the inflation report, enthusiasm spread quickly through both crypto and traditional markets. 

A trader known for an unbroken record of profitable positions reportedly opened $155 million in long trades on Bitcoin and Ethereum shortly after the CPI release. That level of conviction is rarely seen unless major investors expect a strong follow-up move.

Stock markets mirrored the same confidence. Nasdaq futures gained 0.83% and S&P futures rose by 0.57% before the US session began. 

These figures show that investors now view the coming months as an opportunity rather than a risk. When liquidity expands, Bitcoin often leads the way because of its global recognition and deep market depth.

According to VanEck, global money supply continues to explain more than half of Bitcoin’s price movements. 

Their data also shows that the recent 18% correction in October was not the start of a downturn but a typical mid-cycle pullback that flushed out excessive leverage. 

Open interest and funding rates have since stabilised, suggesting that the market has reset and is now ready for another advance.

VanEck analysts also pointed out that blockchain revenues are becoming more correlated with token prices, reflecting growing institutional integration. 

This is a sign that digital assets like Bitcoin are no longer seen as speculative instruments but as part of a larger, maturing financial system.

With Bitcoin currently consolidating between $95,000 and $120,000, the stage appears set for a decisive move. 

If the Federal Reserve confirms a rate cut and liquidity starts to return, traders may soon witness one of the strongest rallies in recent years. Those still waiting on the sidelines might later wish they had acted sooner.

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How to Buy Bitcoin on Bitrue

If you are ready to take advantage of this potential shift, Bitrue offers one of the simplest and safest ways to buy Bitcoin. The platform is known for its reliability, security, and user-friendly design that makes trading accessible for everyone.

1. Open the Bitrue App

Download and open the Bitrue application on your device. Make sure it is the latest version to access all the latest updates.

2. Go to Trade

On the home screen, select the Trade option. This will take you to Bitrue’s main trading section where you can access different markets.

3. Select Spot Market

Choose Spot Market to buy Bitcoin directly using your account balance. This is the most direct and transparent way to purchase BTC.

4. Search for Bitcoin

In the search bar, type “Bitcoin” or “BTC” to bring up the BTC/USDT trading pair.

5. Enter the Amount and Confirm

Input how much you would like to buy. You can either use a market order for an immediate purchase or a limit order to set your preferred buying price.

6. View Bitcoin in Your Wallet

Once the purchase is complete, your Bitcoin will automatically appear in your Bitrue wallet. From there, you can hold it securely or continue trading whenever you choose.

Bitrue combines ease of use with advanced protection, including two-factor authentication and real-time monitoring of trades. 

It gives you the freedom to buy and manage your assets in one place without complications. Whether you are new to crypto or an experienced investor, Bitrue ensures your trading experience remains smooth and secure.

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Conclusion

The cooling of inflation to 3% and the strong likelihood of a Fed rate cut have created a renewed sense of optimism in the market. 

Bitcoin has already shown signs of strength, and many believe this could be the beginning of a broader move higher. With traders expecting potential gains that could reach $130,000, acting early may prove rewarding.

Buying Bitcoin through Bitrue is the best way to get started safely and easily. Open the app, go to the Spot Market, enter your trade amount, and manage your BTC directly from your wallet. 

As markets prepare for a new phase of growth, Bitrue gives you the tools to participate confidently and securely.

FAQ

Why did Bitcoin react to the latest CPI report?

Bitcoin rose because lower inflation increases the chance of rate cuts, which improves liquidity and supports asset prices.

How high could Bitcoin rise if the Fed cuts rates?

Analysts estimate that Bitcoin could reach between $130,000 and $132,000 by early 2026 if liquidity continues to improve.

Why should I buy Bitcoin through Bitrue?

Bitrue provides a secure, verified environment for trading with easy access to Spot Market features and reliable protection for your funds.

Is Bitrue safe for storing Bitcoin?

Yes. Bitrue uses two-factor authentication and modern security systems to ensure your Bitcoin remains protected.

How do I start trading on Bitrue?

Download the app, go to Trade, select Spot Market, search for Bitcoin, input your amount, confirm your trade, and view it in your wallet.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.