Bitcoin rebounds as Fed rate-cut bets and ETF inflows lift price

Bitcoin swung from a sharp late-September selloff into a tentative early-October rebound as investors weighed central bank policy, exchange-traded fund demand and technical signals. The cryptocurrency fell below the 110,000 level around September 25 following a wave of liquidations and macro-driven selling, then recovered toward the high 110,000s as markets priced in possible interest-rate cuts and continued institutional flows.

The pullback in late September erased gains made earlier in the year after Bitcoin briefly dipped to about 74,000 in the first quarter and subsequently set multiple all-time highs above 120,000. On September 26 more than 850 million in leveraged positions were liquidated within 24 hours, according to derivatives tracker CoinGlass, illustrating the fragility of sentiment during the selloff. Market trackers showed Bitcoin trading near 109,000 during that period, and on-chain indicators signaled elevated fear among investors. A crypto Fear and Greed gauge fell to the high 20s, while some technical analysts pointed to the daily relative strength index at levels associated with oversold conditions.

Those technical readings, together with expectations for...