Bitcoin Rallies Past $113,000 After Fed Rate Cut & Gaza Peace Plan Proposal

Stay up to date with our monthly market commentary:

• The Federal Reserve cut its key interest rate by 25 basis points in September. 
• A potential Gaza peace plan boosts the crypto market at month-end. 
• Spot Bitcoin ETFs record another net inflow of over $2 billion. 
• Bitcoin (BTC) closed the month up 4.1%, while Ether (ETH) is down 6.6% versus last month.*

Market Overview - September 

The price of Bitcoin (BTC) increased by 4.1% in September, closing the month at around the $113,100 mark. 

The largest cryptocurrency managed to close another month in the green. This time, it rebounded from $108,500 to over $113,000 in the last 30 days with a short-lived rally to $117,900 following the Federal Reserve's first rate cut in over nine months. 

The Federal Open Market Committee (FOMC) decided to lower the federal funds target range by 25 basis points to 4.00%-4.25%. 

In an official comment, they further elaborated: "Job gains have slowed, and the unemployment rate has edged up but remains low… it seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated." 

Fed Chair Jerome Powell also noted that they will continue to monitor the situation, without needing to take immediate action. According to Powell, the Fed is shifting its focus to the labor market in order to keep inflation under control. 

In the first twelve hours after the news, Bitcoin surged by over 1.8%, and at one point in September, it even managed to cross $117,900 before pulling back to $113,500 to close out the month. 

After a drawdown to as low as $108,000, BTC rallied to close out the month above $113,000 as a proposed peace plan for Gaza made headlines, which helped to lift global markets across the board. 

Crypto Asset Market Performance Review 

September delivered a mixed performance across the crypto asset market. Bitcoin (BTC) finished the month up 4.1%, while Ether (ETH) closed the month in the red, down 6.6%. The best-performing cryptocurrency asset this month was Binance’s BNB token, with a 17.9% increase. 

BTC rebounded from a weak August with a strong performance of 4.1% in September. The biggest performance boost was attributed to the Fed's interest rate cut and a potential resolution of the Middle East conflict. 

ETH, on the other hand, was unable to retain its strong August performance and ended the month down 6.6%, despite growing interest from ETF investors, with three out of five net inflow weeks in the spot Ethereum ETF. 

The best-performing asset this month was BNB, with an increase of 17.8%. The native token of the largest crypto exchange had a major news announcement this month: Kazakhstan launched a state cryptocurrency fund that includes BNB. The relationship between the country and the exchange goes back over three years, and this news item now marks the next step. 

The remainder of the cryptocurrency market experienced a mixed month overall. 

Institutional Interest in Bitcoin

In September, institutional interest in spot Bitcoin ETFs increased with another $2+ billion net inflow week in the middle of the month, and BlackRock’s IBIT options surpassed Deribit as the top Bitcoin options venue.

BlackRock’s IBIT Surpasses Deribit as Top Bitcoin Options Venue

BlackRock’s IBIT continues to solidify its position as a market leader in institutional Bitcoin access. In September, it surpassed Deribit to become the largest venue for Bitcoin options, with open interest reaching nearly $38 billion compared to $32 billion on Deribit.

Spot Bitcoin ETFs Recorded Another $2+ Billion Net Inflow Week

September was a strong month for BlackRock’s spot Bitcoin ETF, as well as for the other ETF issuers, with four out of the five weeks recording net inflows. 

The week of September 12 was particularly notable. All funds combined had weekly net inflows of over $2.34 billion. In total, all spot Bitcoin ETFs combined hold over $150 billion in total net assets or just over 6.61% of the entire Bitcoin market cap.

Bitcoin on Balance Sheets

Strategy, the largest publicly traded holder of Bitcoin, continued its efforts to buy Bitcoin as a strategic reserve asset. In September, the company purchased 7,574 BTC, bringing its total balance sheet holdings to 640,031 BTC. 

Metaplanet, a publicly traded Japanese company, announced in July that it will issue $208 million in 0% interest rate ordinary bonds to acquire more Bitcoin. In September, the Japanese company bought 6,564 BTC, ending the month with 25,555 BTC on its balance sheet. 

Strive Asset Management, a publicly traded company in the U.S., was already among the top 20 publicly traded Bitcoin treasuries, but took another major step this month. The company announced a merger with Semler Scientific, a fellow publicly traded company with a Bitcoin treasury, in an all-stock transaction. This merger would combine the balance sheets of both companies, resulting in a total of 10,911 BTC. 

Marathon Digital Holding, a publicly traded miner in the U.S., acquired 1,838 BTC, bringing the company's total BTC holdings to 52,477 BTC on its balance sheet. 

‍*Closing price data is from September 30th 2025, at 14:30 CEST

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