The Bitcoin Layer Bitcoin Hits $116,000 as the Fed Eyes Rate Cuts
33 snips
Sep 12, 2025 The discussion kicks off with how the Federal Reserve's rate cuts are influencing the markets, particularly Bitcoin, which recently soared past $116,000. Unpacking U.S. labor market trends reveals intriguing insights into rising unemployment and inflation pressures. The conversation shifts to the effects of Treasury yields and a growing interest in gold amid a global monetary reorientation away from the dollar. Finally, MVRV signals hint at a bullish trend for Bitcoin, suggesting a potential exciting trajectory ahead for the cryptocurrency.
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Market Pricing Signals Multiple Fed Cuts
- Markets price roughly 1% of Fed cuts over the next 9–12 months, implying multiple cuts are forthcoming.
- Nik Bhatia argues this signals 50–75bps of cuts in the next 3–5 months beyond the immediate 25bp move.
Repo Rates Drive Market Funding Conditions
- The repo (SOFR) rate is the lifeblood of US funding and the Fed guides it via corridor policy.
- As policy rates move lower, repo rates will follow and affect financing dynamics for treasuries.
Monitor Repo Around Tax Deadlines
- Watch tax and quarter-end deadlines for repo market stress as corporations pull cash into the Treasury General Account.
- Expect temporary repo rate spikes around those dates and monitor funding liquidity closely.
