- Bitcoin is showing early signs of bottoming as easing macroeconomic pressures and the Fed’s dovish stance restore investor confidence.
- Experts believe a soft U.S.-China trade outcome and upcoming rate cuts could drive Bitcoin higher.
Bitcoin appears to be stabilizing after weeks of turbulence, hinting at a potential market bottom. The top cryptocurrency climbed nearly 2% in the past 24 hours, reaching a high of $109,405 at press time, sparking mild optimism across the altcoin market, according to CoinGecko data.
Peter Chung, Head of Research at Presto Research, believes Bitcoin’s current level could mark a turning point. “I think Bitcoin is bottoming here,” he told Decrypt, adding that the next significant move is more likely to be upward rather than downward.
Fed’s Dovish Pivot Boosts Investor Sentiment
The renewed optimism follows last week’s Federal Reserve pivot, signaling the possible end of quantitative tightening (QT) and potential interest rate cuts. This shift has injected hope into markets as looser financial conditions could drive more liquidity toward risk assets like Bitcoin.
Easing macroeconomic pressures—especially the anticipated softening of the U.S.-China trade war—play a major role. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet in Malaysia this week to defuse tensions further.
Experts Cautiously Optimistic
Sean Dawson, Head of Research at Derive, echoed the bullish outlook but urged caution. “This is probably a local bottom,” he said, emphasizing that while lower rates tend to push investors toward crypto, renewed trade tensions could still spark volatility.
Dawson noted that Bitcoin remains highly sensitive to trade talks, with major price swings this year following tariff announcements. A positive outcome from the upcoming negotiations could trigger a significant upward rally.
What Lies Ahead for Bitcoin
Market analysts are closely watching Friday’s inflation report, though most agree that progress in U.S.-China relations could have a stronger influence on Bitcoin’s trajectory.
Looking ahead, the Fed’s plan to end QT—which involves reducing its balance sheet—may prove bullish for Bitcoin. As liquidity returns, speculative assets are likely to benefit. A quarter-point rate cut is also expected at the Fed’s next meeting on October 29, potentially fueling further gains by early next year.
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