Federal Reserve interest rate reduction propels Bitcoin (BTC) by 1%, with altcoins experiencing a surge of 3-5% in value.
In the world of finance, the recent announcement by the Federal Reserve has sent ripples through various markets. On September 17, 2025, the Fed implemented a 25 basis point rate cut, sparking increased trading activity in Bitcoin and other cryptocurrencies.
Bitcoin, the leading cryptocurrency, has been consolidating in the $112,000-$115,000 range in recent weeks. Crypto analyst Ali Martinez has identified $115,440 as a key support level for Bitcoin. If the digital asset 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.
The daily trading volume of Bitcoin jumped 41% to more than $67 billion following the rate cut announcement. This surge in trading volume has been mirrored in other cryptocurrencies, with Ethereum, Binance Coin, Solana, Dogecoin, and Cardano all posting gains between 3-5%. Binance Coin is approaching a major milestone, eyeing the $1000 mark amid rumors of CZ's return to Binance.
Market participants are assessing how aggressive the Fed's rate-cutting cycle might be through the rest of 2025. Some analysts expect Bitcoin to follow a similar pattern over the coming year, potentially benefiting from further rate cuts.
Meanwhile, the traditional stock market is also showing signs of strength. The S&P 500 has continued pushing to new all-time highs above 6,600. Historical patterns suggest that the S&P 500 has risen an average of 14% in the following 12 months after a Fed rate cut within 2% of all-time highs.
A significant regulatory development has also occurred in the crypto space. 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.
Investors, however, remain cautious due to Bitcoin's decreased volatility in recent times. Market liquidations totaled $415 million in the last 24 hours, with $232 million from short liquidation.
As the market continues to evolve, it's essential for investors to stay informed and make informed decisions based on the latest trends and developments.
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