09 Oct 2025
Bitcoin Tactics: Cryptocurrency Index Breaks $133,000 Record
On Thursday, Bitcoin experienced a notable increase, surpassing the $123,000 mark, although it remained below the record highs achieved earlier in the week. This upward movement in Bitcoin’s price is primarily attributed to investor speculation regarding potential interest rate cuts by the Federal Reserve later this year.
The anticipation of these cuts has generated a sense of optimism among investors, particularly as there has been a significant influx of capital into U.S.-listed Bitcoin exchange-traded funds (ETFs), which has contributed to the upward trajectory of the world's leading cryptocurrency by market capitalization.
Tom Cohen, the Head of Investment & Trading at Algoz, remarked on the historical performance of Bitcoin in October, stating that this month has typically been favorable for the cryptocurrency, with average gains often reaching double digits or more.
This historical trend likely set the stage for the rally observed at the beginning of the month. As of 08:38 ET (12:38 GMT), Bitcoin was trading approximately 0.6% higher at $123,347.5, following a series of volatile trading sessions.
The minutes from the Federal Reserve's September policy meeting revealed that a significant majority of officials are open to the idea of lowering borrowing costs this year. However, several policymakers expressed caution, highlighting the persistent risks associated with inflation.
Some members of the committee suggested maintaining the current interest rates until there is more definitive evidence of easing price pressures and a more pronounced slowdown in the labor market, as reflected in the meeting minutes.
In addition to the Fed's monetary policy considerations, traders are also navigating a broader landscape of economic uncertainty, particularly in light of the ongoing U.S. government shutdown, which has now entered its second week.
This political deadlock has resulted in delays for crucial economic data releases, which are typically relied upon by Fed officials to make informed decisions regarding monetary policy adjustments.
Amidst this climate of uncertainty, the U.S. dollar index has surged by over 1% in the past week, as investors have gravitated toward traditional safe-haven assets. The strengthening of the dollar has posed challenges to the narrative surrounding recent debasement trades—strategies betting that weakening fiat currencies would lead to an increase in the value of assets such as Bitcoin and gold.
Budrigantrade analysts have pointed out that, despite the fluctuations in the market, Bitcoin continues to be supported by its status as a hard asset. With real yields softening and gold prices hovering near record highs, Bitcoin is perceived as an instrument of programmed scarcity, particularly in an era characterized by policy uncertainty.
This perspective reinforces Bitcoin's appeal as a hedge against inflation and a viable alternative investment in the current economic environment. As investors weigh their options, the interplay between traditional financial markets and cryptocurrencies like Bitcoin will likely remain a focal point in the coming months.
