Nearly everyone is awaiting the Federal Reserve 's decision on interest rates and the crypto community is monitoring how Bitcoin's price will react to the much-anticipated announcement.
Traders on Polymarket think there is more than a 90% chance of a rate cut by at least 25 basis points on Sep. 17.
Related: What is Crypto? Cryptocurrency explained
Two Prime founder and CEO Alexander Blume thinks that if the Fed indeed slashes rates, Bitcoin treasury firms could witness a hike in funding via private investment in public equity (PIPE) and convertible debt. Two Prime is an SEC-registered investment advisor that manages Bitcoin assets on behalf of institutional investors.
Blume told TheStreet Roundtable that more money will flow into innovative and riskier investment vehicles in case of a rate cut, which would be a positive development for Bitcoin treasury firms.
"The investors funding PIPEs and convertible debt into these vehicles rely on the ability to cycle through the investments, so the prospect of a continued bull market emboldens them to continue participating as well."
To put it simply, a rate cut translates to more liquidity in the market. As per Blume, investors funneling more money via instruments like convertible debt into Bitcoin treasury firms would essentially be betting on a long Bitcoin bull run.
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25 bp cut 'largely constructive' for Bitcoin
Blume added, "I suspect a 25bp cut over the next several quarters will be largely constructive for risk assets, including bitcoin."
He contends that high inflation, a stalling labor market, and a weakening dollar strengthen the case for Bitcoin as a trusted reserve asset.
"We've seen a flight to safety with gold rallying as of late, and I suspect BTC will follow suit."
As per Kraken's price feed , Bitcoin was trading at $115,767.22, down 0.2% in an hour.
Edited by: Mehab Qureshi
This story was originally reported by TheStreet on Sep 17, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
