Crypto experts name the main factor behind bitcoin’s growth to $ 124,000

Bitcoin BTC $113,086.00 Mezo Wrapped BTC -2.70% Market capitalization $40.62 million VOL. 24 hours $1.69 billion , Ethereum ETH $4,155.95 Bridged Ether (StarkGate) -6.68% Market capitalization $97.11 million VOL. 24 hours $2.51 billion and other major cryptocurrencies declined on Sunday evening, losing the growth that followed the US Federal Open Market Committee’s decision to cut the rate. Bitcoin dropped to $ 114,467, which is 1% lower than the previous day. Ethereum decreased by 3.3% to $ 4,307, XRP XRP $2.81 XRP -5.69% Market capitalization $167.94 billion VOL. 24 hours $0.47 billion fell by 2.5% to $ 2.91, and Solana SOL $221.07 Binance-Peg SOL -7.23% Market capitalization $0.24 billion VOL. 24 hours $0.98 billion decreased by 3.24% to $ 232.5.

At the beginning of the week, Bitcoin rose to around $ 118,000 after the announcement of a 25 basis point cut in the Fed’s interest rate. This caused short-term optimism among investors. However, this momentum quickly faded as the market began to assess further macroeconomic risks and monetary policy prospects.

BTSE Chief Operating Officer Geoff May noted that the market slipped amid traders' caution in an uncertain environment. According to him, the Fed said that it will decide on the next steps «meeting by meeting», which reduces the likelihood of a rapid easing of policy. During the press conference, Fed Chairman Jerome Powell explained that the September decision was a «risk management step» and there was no need to rush to new rate cuts.

Analysts point out that previous market expectations for a large-scale effect of the September rate cut were exaggerated. BTC Markets analyst Rachel Lucas emphasized that the bull cycle has largely run its course. She noted that long-term investors are not selling assets, while short-term traders remain uneasy. According to her, the market is now characterized by a state of «nervous optimism» rather than fear.

Lucas also added that the situation is a pause, not a trend reversal. She emphasized that a new stage of growth could begin if Bitcoin breaks through $ 124,000. Among the possible catalysts are the approval of spot Bitcoin ETFs in new regions, increased institutional demand from large companies, and the potential adoption of cryptocurrencies by governments.