Bitcoin (BTC) is set to experience an explosive rally with the macroeconomic data leaning towards risk-on assets. An August reduction in the U.S. Producer Price Index (PPI) by 0.1% boosted hopes of Fed rate reductions, prompting investors to re-enter crypto trading. This optimism, supported by PPI, enabled Bitcoin to rise above $114,000 and might establish the basis of the second leg up.
According to the Bureau of Labor Statistics, core PPI increased by 0.3 percent monthly, whereas the headline PPI fell by 0.1 percent. This fall indicates that producers have less pressure to raise prices and supports the argument of monetary easing. Traders responded, with Bitcoin going up by almost 1% in less than an hour after the data was released.
Investors have now grown hopeful that the Fed will lower rates during its next FOMC meeting, with the CME Fedwatch system indicating a high probability of a 25-basis-point decline (88 percent). Reduced borrowing costs in the past stimulated risk asset demand, such as Bitcoin, as the opportunity cost of holding non-yielding assets decreases.
There is also a growing confidence as indicated by market sentiment. Crypto Fear and Greed Index went down to 49 which was a neutral figure compared to the previous reading of 70 last month. This gave room to a new wave of bullish momentum. As inflation pressures reduce, and liquidity conditions get better, Bitcoin has a chance to continue its trend into the coming weeks.
Technical and on-chain data reinforce the bullish outlook. Bitcoin price regained major resistance at $113,500, and it is above its 50-day SMA of $114,544. The next major resistance zones being targeted by the analysts are now at $117,500 and $120, 000. A break may boost a rapid advancement to $124,474 where it is anticipated to experience intense supply.
BTCUSD Chart | Source: X
ETF inflows augment this bullish momentum. Spot Bitcoin ETFs gained net inflows of $1.7 billion in the course of the week and $2.3 billion over five days up to September 12. These numbers indicate a high level of institutional involvement and support the maintenance of Bitcoin’s $2.3 trillion market capitalization.
Meanwhile, whale wallets have accumulated more than 65,000 BTC in just one week, reducing exchange reserves and tightening supply.
Also, derivative market data indicates a short squeeze. There are short positions of over 2.4 billion between $116,000 and $120,000. A decisive breakout above $120,000 may lead to liquidations, which would boost BTC price gains and test new all-time highs within weeks.
As Bitcoin dominates the news, other emerging projects are attracting investors. The Ethereum-based crypto MAGACOIN FINANCE announced a new presale milestone after a series of successive rounds of sellouts.
Market strategists cite MAGACOIN FINANCE as one of the first-mover projects that the wider market dominance of Bitcoin could advantage. Using the Ethereum infrastructure and positioning itself as an alternative to Bitcoin, the project positions itself to tap into the demand for high-return opportunities by investors.
As it gets ready to be listed on exchanges and increase its number of investors, MAGACOIN FINANCE is among the best altcoins to buy in 2025.
Bitcoin price surge to over $114,000 highlighted the fact that macroeconomic factors and institutional pressure remain the drivers of crypto markets. The decline in Producer Price Index (PPI) consolidates the prospects of Fed rate reductions, and preconditions BTC price push towards $120,000.
Therefore, projects like MAGACOIN FINANCE are gaining momentum, which indicates that investors are also finding new opportunities with explosive growth potential in the wake of Bitcoin’s dominance.
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Website: https://magacoinfinance.com
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