Bitcoin Hits One-month High as Fed Cut Supports Risky Assets

Today’s Market Analysis on behalf of Frank Walbaum, Market Analyst at NAGA

Bitcoin surged to a one-month high on Thursday, extending its rally after the Federal Reserve delivered its first rate cut of 2025. As widely expected, the Fed lowered rates by 25 basis points, with projections signaling additional cuts later this year. A looser monetary stance could encourage greater risk-taking and provide support for cryptocurrencies.

Still, ETF flows suggested a more cautious undertone. U.S. spot Bitcoin ETFs saw outflows of USD 51 million on Wednesday—the first withdrawals in two weeks—while Ethereum products posted redemptions for a second consecutive day. If this trend continues, it may offset the positive macro backdrop and cap further upside.

Liquidation data painted a mixed but slightly supportive picture. Over the past 24 hours, short liquidations exceeded long ones, hinting that traders are leaning cautiously toward a bullish outlook.

On the regulatory side, the SEC approved a new framework to simplify the listing of commodity-based exchange-traded products (ETPs) across major U.S. exchanges, including those tied to crypto. While the process remains selective, the move reflects growing recognition of digital assets. Over time, this could lift investor sentiment and work in Bitcoin’s favor.