TLDR
- Fed announced 25 bps rate cut, triggering a crypto market rally with BTC up 1% to $117,531
- Altcoins showing stronger gains: BNB, SOL, ADA, DOGE, and XRP up 3-5%
- Market liquidations totaled $415 million with $232 million in short liquidation
- Historical data shows S&P 500 rises average 14% in year following rate cuts
- BTC key support at $115,440 with potential upside toward $137,300
Bitcoin and the broader cryptocurrency market are responding positively to the Federal Reserve’s first interest rate cut of 2025. On September 17, Fed Chairman Jerome Powell announced a 25 basis point reduction in interest rates, ending a period of elevated rates.
The news has sparked a rally across the crypto market. Bitcoin is trading at $117,531, up 1% in the last 24 hours.
The response from altcoins has been even stronger. Ethereum (ETH), Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) have all posted gains between 3-5%.
BNB Coin is approaching a major milestone, eyeing the $1000 mark amid rumors of CZ’s return to Binance. The token has reached new all-time highs during this rally.
Trading activity has surged dramatically. Bitcoin’s daily trading volume jumped 41% to more than $67 billion, showing increased trader interest following the rate cut announcement.
Market liquidations have reached $415 million in the last 24 hours. Of this total, $232 million came from short positions being liquidated as prices moved higher.
Market Indicators Point to Bullish Sentiment
Several indicators suggest growing bullish sentiment in the crypto market. Blockchain analytics firm Glassnode reports increasing open interest in Ethereum, XRP, and Binance Coin.
This rise in open interest shows renewed leveraged activity and greater demand for directional exposure in these altcoins.
The US Securities and Exchange Commission has allowed a proposed rule change to adopt generic listing standards for cryptocurrency ETFs. This regulatory development could pave the way for new ETF approvals for tokens like SOL, ADA, and DOGE.
Each of these altcoins has gained more than 5% in the past 24 hours, outpacing Bitcoin’s more modest rise.
Bitcoin’s price has been consolidating in the $112,000-$115,000 range in recent weeks, even as the S&P 500 has continued pushing to new all-time highs above 6,600.
Historical Patterns Suggest Further Upside
Market researchers are looking at historical patterns following Fed rate cuts. According to The Kobeisse Letter, when the Federal Reserve cuts rates within 2% of all-time highs, the S&P 500 has risen an average of 14% in the following 12 months.
Given Bitcoin’s strong correlation with the S&P 500 index, some analysts expect Bitcoin to follow a similar pattern over the coming year.
Crypto analyst Ali Martinez has identified $115,440 as a key support level for Bitcoin based on Pricing Bands analysis. Martinez suggests that if Bitcoin holds above this level, it could potentially move toward $137,300.
However, if Bitcoin breaks below this support, it could open a downside path to $93,600.
Investors remain cautious as Bitcoin’s volatility has decreased recently. Many are watching for a daily close above $117,200, which could signal further gains toward the $120,000 level.
The rate cut comes after months of anticipation in financial markets. With this first reduction now implemented, market participants are assessing how aggressive the Fed’s rate-cutting cycle might be through the rest of 2025.
Bitcoin’s price action in the coming weeks may depend on whether the broader market views the 25 basis point cut as the start of a more extensive easing cycle or as a one-off adjustment.
For now, the most recent market data shows Bitcoin holding above the key $115,440 support level identified by analysts, with trading volume continuing to increase.
