Bitcoin gained marginally on Thursday, September 18, to top the $1,18,000 mark after the US Federal Reserve announced a 25 bps rate cut overnight.
The rise in Bitcoin and other crypto tokens drove the market capitalisation of the asset class 2 per cent higher.
As anticipated, the US Federal Reserve lowered interest rates by 25 basis points and signalled the possibility of two additional cuts before the year ends.
The recent upward momentum is largely fueled by ETF inflows, supported by rising institutional demand and optimistic expectations of Fed rate cuts, signalling increasing confidence among both traders and long-term investors.
“The crypto market is digesting the Fed’s 25 bps rate cut with surprising calm, as Bitcoin is moving upwards slowly despite initial volatility. Traders remain in a split while some argue the cut was already priced in. Optimism still points to Bitcoin regaining momentum toward the $120,000 mark if catalysts align,” said Avinash Shekhar, Co-Founder and CEO, Pi42.
Meanwhile, Ethereum also remained steady after the FOMC meeting, rising nearly 2 per cent to move past $4,600 level on Thursday. Other altcoins like XRP and Dogecoin also witnessed stronger reactions after the announcement, suggesting capital rotation beneath the surface.
“Ethereum is flashing strength as bulls eye fresh record highs, while XRP is fueled by optimism around an ETF approval that could see it targeting $3.66,” Shekhar added.
Where is Bitcoin headed in the near-term?
According to Avinash Shekhar of Pi42, the crypto market is trading cautiously despite rate cuts. “Overall, the market is trading cautiously, balancing macro policy signals with sector-specific optimism, and the next move hinges on how traders interpret Powell’s remarks in the coming sessions,” he said.
Investors are now closely watching cues from the central bank’s October meeting to assess whether Wednesday’s move signals the start of a larger policy shift or is merely a standalone adjustment.
Sumit Gupta, co-founder, CoinDCX, believes that BTC is trading in a crucial range between $117,138 and $119,500 currently and a clean breakout above this zone could pave the way for fresh all-time highs as bullish sentiment intensifies.
“Traders should remain cautious as Coinglass’s liquidation heatmap highlights a significant cluster of long liquidations just below the current price. A drop back into this zone could trigger a cascade of long liquidations, accelerating downside pressure. Conversely, a decisive move above $118,000 could liquidate overleveraged shorts, resulting in a rapid short squeeze and a sharp leg higher. This setup positions Bitcoin at a pivotal moment for its next big move towards a new ATH,” Gupta said.
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