The move keeps BTC near its recent highs and strengthens the case that the market is positioning ahead of expected Federal Reserve rate cuts.

After this week’s economic data in the U.S., traders now see almost 90% odds of a September rate cut, with further easing priced in through early 2026. That dovish backdrop has driven inflows into risk assets, including digital currencies.

Technical Breakout Watch

On the charts, Bitcoin continues to trade inside a narrow band between $113,000 and $114,500 — an area analysts call a “bullish gate.” A strong daily close above this zone could open the door to a test of the $118,000 level. On the downside, support remains firm between $109,000 and $107,000, levels that cushioned the last pullback in August.

Ethereum also tracked higher, holding just above $4,400, though options data shows traders are still hedging with downside protection despite the improving macro environment.

Institutional Flows Add Fuel

ETF activity remains a key driver. Spot Bitcoin funds attracted $757 million of net inflows on Sept. 10, with ether ETFs adding another $172 million, according to Blockhead. Analysts say that renewed institutional demand combined with a supportive macro backdrop could accelerate crypto’s next leg higher.

READ MORE:

Crypto Expert Sees Big Year-End for Solana

Macro Tailwinds

With the next FOMC meeting days away, focus is firmly on the Fed. Goldman Sachs and other major players expect Chair Jerome Powell to resume easing, a move that historically has acted as a tailwind for Bitcoin and other digital assets.

For now, the market tone remains constructive: BTC is holding near multi-month highs, and traders are betting that rate cuts will keep liquidity flowing into crypto.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

The post Bitcoin Price Outlook: Traders Watch Fed Meeting After Inflation Data appeared first on Coindoo.