Bitcoin Surges to $94K One Day Ahead of Expected Fed Rate Cut

Bitcoin ripped higher to $94,000 in a dramatic pre-Fed rally, as traders positioned themselves for what many believe will be the Federal Reserve’s first rate cut in 2025. The move comes after days of choppy price action and heavy liquidations, but sentiment flipped quickly once futures markets began pricing in a near-certain easing decision.

What’s driving the surge?

Investors are essentially betting that lower interest rates will push liquidity back into risk assets — and Bitcoin is almost always the first to react. A rate cut would weaken the dollar, improve borrowing conditions, and potentially reignite institutional inflows into digital assets. BTC’s rally is already reflecting that expectation, with open interest rising and spot ETF flows stabilizing after a shaky week.

Market analysts warn, however, that the rally could be fragile. With Bitcoin still recovering from recent volatility and whale-level selling pressure lingering, a post-Fed pullback is possible if Jerome Powell delivers anything short of a convincingly dovish tone.

Still, the mood remains optimistic. Traders view the run-up as the market “pre-pricing” a friendlier macro backdrop. If the Fed indeed cuts and signals more easing ahead, Bitcoin’s next test could be the long-watched $100,000 mark — potentially sooner than many expected.