Bitcoin Rockets Toward $116,000 as Crypto Mania Roars Back
Bitcoin also broke above its 50-day moving average, a key momentum threshold watched by traders. Markets are now pricing cuts.
Quick overview
- Cryptocurrencies experienced a rally on September 12, with Bitcoin trading at $116,000 and Ethereum at $4,600.
- The altcoin market also saw gains, with Dogecoin leading at an 8.3% increase, while only a few tokens, like Avalanche and Cronos, declined.
- Bitcoin ETFs attracted $552 million in net inflows, marking four consecutive days of gains, while Ethereum ETFs reversed a trend of outflows.
- Optimism in the crypto market was bolstered by a U.S. inflation report, leading to expectations of a rate cut by the Federal Reserve.
Cryptocurrencies continued their rally early Friday, September 12, with Bitcoin (BTC) trading around $116,000, up 1.3% over the past 24 hours, according to Binance. Ethereum (ETH) also gained 4%, climbing to $4,600.
The broader altcoin market followed suit, with most major tokens trading higher. Dogecoin led the pack with an 8.3% jump, followed by Solana (+5%) and Chainlink (+4%). Only a few tokens moved lower, including Avalanche (AVAX), down 1.5%, and Cronos, which dropped 2.3%.
ETF Inflows Add Fuel
Crypto exchange-traded funds (ETFs) have also extended their strong momentum. Bitcoin ETFs drew in $552 million in net inflows on Thursday, marking four straight days of gains—their best streak since late August. Ethereum ETFs, meanwhile, posted a third consecutive day of net inflows after six straight sessions of outflows that had seen over $1 billion withdrawn.
Fed Expectations Drive Optimism
Renewed optimism in the crypto market followed Thursday’s U.S. inflation report. The Consumer Price Index (CPI) rose to 2.9% in August, up from 2.7% in July, while core inflation held steady at 3.1%, in line with expectations.
Although headline CPI came in higher, investors see the Federal Reserve as constrained by a weakening labor market, likely forcing the start of a monetary easing cycle sooner rather than later.
The dovish outlook weakened the dollar, fueled risk appetite, and pushed U.S. equities to record highs. Bitcoin also broke above its 50-day moving average, a key momentum threshold watched by traders.
Markets are now pricing in with near certainty that Fed Chair Jerome Powell will announce a 25-basis-point rate cut on September 17, the first of 2025. Further cuts are also expected at the Fed’s remaining two meetings this year.
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