Massive Crypto Surge! Is the Fed About to Spark the Next Bitcoin Bull Run?

 

Why the Crypto Market Is Rising Today: Bull Run Ignition or Another Trap?

The global cryptocurrency market has once again captured investors’ attention, posting an impressive surge over the past 24 hours. The total market capitalization now stands at $3.76 trillion, up 0.48%, signaling renewed optimism across the digital asset space. Analysts cite multiple catalysts — ranging from potential Federal Reserve rate cuts to unexpected political developments — as the fuel behind this sudden wave of bullish sentiment.

Fed Rate Cut Hopes Lift Market Sentiment

One of the central drivers behind today’s market rally is growing anticipation of a Federal Reserve rate cut in the coming weeks. Financial journalist Alex Mason reported that the Fed could inject as much as $1.5 trillion into the U.S. economy through potential rate reductions scheduled for October and November.

Historically, such liquidity infusions have ignited rallies in risk assets — and cryptocurrencies are no exception. Lower interest rates tend to encourage investors to move capital from traditional assets like bonds into high-growth sectors, including crypto. As liquidity expectations rise, market confidence follows suit.

Currently, Bitcoin (BTC) is trading around $111,655, marking a 0.4% intraday increase and up 4.12% over the week. Meanwhile, Ethereum (ETH) remains steady, commanding a 12.4% market share, as traders look for the next major breakout.

The optimism is further reinforced by the Consumer Price Index (CPI) data, which recently came in at 3.1%, slightly higher than last month’s 2.9%, but still within acceptable bounds for the Fed’s inflation outlook. Many investors now expect an additional 25 basis point (bps) rate cut at the next FOMC meeting — a move that could inject fresh liquidity into global markets and provide more momentum for crypto assets.

“Every signal points to the Fed loosening its stance by year-end,” said Mason. “If liquidity expands as expected, we might see one of the strongest crypto bull runs since 2021.”

Trump’s Pardon of CZ Shocks the Market — and Sparks a Rally

In a stunning and unexpected twist, U.S. President Donald Trump announced a presidential pardon for Binance founder Changpeng “CZ” Zhao, who had previously been convicted on charges related to bank violations. The decision sent shockwaves through both political and financial circles — and triggered an immediate rally across the crypto market.

Binance Coin (BNB) surged sharply in the aftermath, while the overall sentiment across major digital assets turned overwhelmingly bullish. Trump’s statement was accompanied by news of renewed U.S.–China trade negotiations, expected to take place in Washington later this month. This combination of diplomatic optimism and regulatory leniency has reignited investor confidence in crypto’s global outlook.

“Markets thrive on narratives,” noted Samantha Liu, a macro strategist at Horizon Capital. “A presidential pardon for one of the most influential figures in crypto sends a message — that Washington is open to dialogue with the digital economy again. It’s a psychological turning point.”

The Binance ecosystem, which had suffered reputational setbacks over the past year, is now seeing a wave of renewed trading activity. Data from CoinMetrics shows that daily trading volumes on Binance spiked by 17% within hours of the announcement, underscoring the market’s reaction to the political news.

Traders Liquidated as Volatility Returns

While optimism dominates the headlines, the surge in volatility has also led to massive liquidations across leveraged markets. In the past 24 hours alone, more than 118,000 traders were liquidated, totaling $194.79 million in losses. The largest single liquidation occurred on HTX (BTC-USDT), worth $2.91 million.

Bitcoin and Ethereum contributed significantly to the total, with $38.82 million and $42.28 million in liquidations respectively. Such figures indicate that while bullish sentiment is growing, the market remains highly reactive to both news events and technical swings.

These sharp movements are not unusual during transitional market phases. “We’re seeing a tug of war between optimism and caution,” said Michael Anders, senior analyst at ChainView Research. “Every breakout attempt comes with liquidation risk, especially in a market still digesting macro and political shocks.”

Fear and Greed Index Shifts — A Turning Point?

The Crypto Fear and Greed Index, a key sentiment barometer, has shifted noticeably in recent days. The index moved from Extreme Fear (23) last week to Fear (37) today — a clear signal that the market’s emotional landscape is recovering.

Historically, such transitions precede sustained bull phases, as both retail and institutional investors gradually return to the market after prolonged hesitation. According to data from Glassnode, wallet activity among long-term holders has risen by 5%, indicating renewed confidence in future price appreciation.

“Sentiment is everything in crypto,” commented Ravi Patel, a digital asset fund manager based in Singapore. “When fear starts to fade, liquidity and volume follow. We could be on the edge of something much bigger.”

Global Liquidity and Regulatory Outlook

Beyond U.S. monetary policy, global developments are also shaping crypto’s trajectory. Several Asian and European central banks have signaled a willingness to ease financial conditions in the coming quarter, citing slowing growth and the need to stimulate private investment.

Source: Coinglass

In particular, China’s announcement of new digital asset-friendly guidelines has added fuel to the rally. The country’s Ministry of Commerce recently stated that it would “support blockchain-based trade financing initiatives,” a move widely seen as a soft pivot toward integrating digital assets into mainstream economic operations.

At the same time, the European Central Bank (ECB) has hinted at maintaining its neutral-to-dovish stance going into Q4, which could create a synchronized liquidity wave across major global economies. Such developments are typically bullish for high-risk, high-reward sectors like crypto.

What’s Next for the Market?

Looking ahead, all eyes are on the Federal Reserve’s next policy announcement, expected in early November. If the central bank confirms even a modest rate cut, analysts predict that it could unleash a powerful liquidity-driven rally similar to those seen in 2020 and 2021.

Bitcoin’s technical structure also supports a bullish continuation. The leading cryptocurrency has successfully held above the $110,000 level, a key psychological barrier. Analysts at TradingView suggest that a breakout above $115,000 could open the door to a new all-time high before the end of the year.

Altcoins are also showing strength, with Solana (SOL), Avalanche (AVAX), and Polkadot (DOT) all gaining between 3% and 6% in the last 24 hours. The rotation into smaller-cap assets often signals the middle stage of a bull market, as investors diversify beyond Bitcoin and Ethereum.

However, not everyone is convinced the rally will last. Critics warn that excessive speculation could lead to another rapid correction, especially if inflation remains sticky or if the Fed delays its rate-cut timeline.

“The market is priced for perfection,” cautioned Laura Chen, economist at BlueRock Analytics. “Any negative surprise — inflation data, geopolitical risk, or delayed liquidity — could reverse this optimism just as fast as it arrived.”

Conclusion

The crypto market’s surge today reflects a confluence of factors: monetary policy expectations, political surprises, and improving investor sentiment. While the rate cut narrative and Trump’s pardon of CZ have undeniably fueled optimism, underlying volatility and macroeconomic uncertainty continue to cast a shadow over the long-term outlook.

Still, as fear fades and liquidity expectations grow, the stage may be set for one of the most defining bull runs in recent memory. Whether this marks the beginning of a sustained uptrend or another short-lived rally depends largely on the Federal Reserve’s next move — and how global investors interpret it.

For now, optimism is back in the air, and the world is watching closely as Bitcoin, Ethereum, and the broader crypto market test the boundaries of the next great financial cycle.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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