Bitcoin Price Could Surge to $137,000 as Fed Rate Cut Odds Rise
Bitcoin price projections hit $137,000 as market anticipates a September Federal Reserve rate cut. In July, US CPI held at 2.7% year-over-year, pushing Fed rate-cut odds to 93.9% via CME FedWatch. Technical analysis shows a bullish flag breakout targeting $130,000–$137,000, while support sits at $117,650–$115,650 and a CME gap at $95,000. Upcoming PPI data could reinforce the easing narrative. Traders should monitor inflation signals, Fed policy updates, and key chart levels for short-term entries and risk management.
Bullish
This news is bullish because rising odds of a Fed rate cut typically lower real yields and boost demand for risk assets like Bitcoin. Historical rate-cut cycles in 2019 and 2020 coincided with significant BTC rallies, illustrating how easing monetary policy can drive price appreciation. The steady July CPI at 2.7% reinforces expectations for monetary easing, while the technical breakout of a bullish flag and clear support zones at $117,650–$115,650 bolster upside momentum. In the short term, traders may target moves toward $130,000–$137,000, using pullbacks as entry points. Over the medium to long term, a lower rate environment and reduced inflationary pressure could sustain higher price floors and encourage further institutional adoption.