Bitcoin Price Rebounds Above $109,000 as Fed Cut Bets Lift Sentiment

Bitcoin opened the week on a stronger note, trading back above US$109,000 after falling nearly 5% last week. The move comes as institutional demand continues to provide support, with Japanese investment firm Metaplanet adding 1,009 BTC to its treasury and US-listed Bitcoin ETFs recording over US$440 million in fresh weekly inflows.

Markets remain cautious following recent US inflation data, which pressured Bitcoin down to US$107,350 over the weekend. However, traders are increasingly pricing in a September interest rate cut from the US Federal Reserve, with CME FedWatch showing nearly 88% odds of a 25 basis point reduction. A rate cut would likely weaken the US Dollar and improve sentiment for risk assets like Bitcoin.

Bitcoin has now pulled back around 14% from its mid-August record high of US$124,474, but support around the US$105,500 level could provide a base for recovery. If that holds, BTC may look to retest resistance near US$116,000.

Despite the recent correction, institutional appetite remains strong. Metaplanet’s latest purchase brings its total holdings to 20,000 BTC, underscoring the corporate adoption trend. Meanwhile, Bitcoin ETFs reversed the previous week’s US$1.17 billion outflow, bringing in US$440 million of inflows, an encouraging sign for market stability.

Short-term technicals still show mixed signals, with Bitcoin’s daily momentum indicators pointing to some bearish pressure. However, early signs of a bullish divergence suggest that a rebound is building. If buyers push BTC above the US$110,650 level, the recovery may extend towards US$117,000.

Overall, the combination of expected Fed easing and renewed institutional demand is helping cushion Bitcoin’s downside and may set the stage for a steadier September than history would suggest.