Bitcoin's growth continues amid expectations of a Fed rate cut.
Date: 2025-10-27 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The Bitcoin market is showing strong growth, fueled by several key factors. One of the main drivers was growing investor expectations for an imminent interest rate cut by the US Federal Reserve. These sentiments were reinforced after US Treasury yields began to decline and the dollar index (DXY) fell, which market participants interpreted as a sign of weakening currency.
Analysts at 10x Research note that amid a weakening dollar, some capital has begun to flow into the cryptocurrency sector. This movement has supported Bitcoin's recovery from recent volatility. In recent days, more than $600 million has flowed into spot Bitcoin ETFs, strengthening the position of the largest cryptocurrency and boosting investor confidence.
Furthermore, limited macroeconomic data from the US due to the partial government shutdown has forced market participants to seek alternative investment and diversification instruments. Bitcoin has once again gained attention as an asset capable of protecting capital amid uncertainty in traditional markets.
Experts also point to declining risks of a recession in the US economy. This factor is increasing investor appetite for riskier assets, including cryptocurrencies. Against the backdrop of declining yields on traditional financial instruments, Bitcoin may once again become an attractive option for those seeking to take advantage of the renewed bullish momentum in the digital asset market.
According to 10x Research, current market conditions create fertile ground for a continuation of the upward trend. Falling bond yields, growing interest in Bitcoin ETFs, and expectations of a more accommodative monetary policy from the Federal Reserve could all increase capital inflows into the cryptocurrency sector.
Previously, analysts at the CryptoQuant platform highlighted the role of so-called "Bitcoin dolphins"—investors holding between 100 and 1,000 BTC. According to experts, their actions will largely determine market dynamics in the late stages of the current bullish cycle. These participants have sufficient volume to influence liquidity and price direction, and their activity is currently at an elevated level.
Thus, a combination of factors—from macroeconomic expectations to the behavior of large Bitcoin holders—is driving positive market sentiment and strengthening the prospects for further growth in the cryptocurrency in the coming weeks.
