Recently, the cryptocurrency market has shown a strong upward trend, with the price of Bitcoin (BTC) rising for three consecutive weeks, successfully breaking through the range of fluctuations. As of September 20, BTC has steadily surpassed the $116,000 mark, representing a cumulative increase of 13.7% compared to the level of $102,000 at the beginning of this month.

The core driving force behind this wave of price increase comes from multiple factors. First, the Federal Reserve has released clear signals of easing, not only implementing a 25 basis point interest rate cut but also hinting at the possibility of two more rate cuts within the year. This dovish stance has greatly boosted market confidence. Secondly, institutional funds continue to flow in on a large scale, with spot ETFs attracting over $660 million in funding within a week, reflecting the unwavering enthusiasm of institutional investors for encryption assets.

In addition, on-chain data shows that the divergence between bulls and bears is intensifying, while technical analysis suggests that a breakthrough is imminent. These factors together are driving the market's expectation for Bitcoin to hit the psychological threshold of $120,000.

The latest monetary policy decision from the Federal Reserve is undoubtedly the key trigger for this round of rebound. The interest rate decision announced on September 18 not only confirmed a second rate cut in 2025, but more importantly, conveyed a clear signal of continued easing through the dot plot, which directly boosted the overall recovery of global risk asset sentiment.

The shift from a single rate cut to a cyclical easing policy marks a significant adjustment in the Federal Reserve's monetary policy orientation. This change has had a pronounced positive impact on the cryptocurrency market, providing strong support for the rise of digital assets such as Bitcoin.

As the macroeconomic environment becomes more accommodative, investors' risk appetite has significantly increased. Cryptocurrency, as a high-risk, high-return asset class, has naturally become a hotspot for capital chasing. The continuous entry of institutional investors has injected new vitality into the market, driving BTC prices to break through important resistance levels.

Looking ahead, with the gradual implementation of the Federal Reserve's easing policies and the continuous inflow of institutional funds, Bitcoin is expected to maintain a strong upward momentum, with the $120,000 mark potentially becoming the next important milestone. However, investors must remain vigilant about market volatility risks and closely monitor changes in the global economic situation and regulatory environment.