Bitcoin gained marginally up to rise above $1,18,000 mark on Thursday, September 18, after the US Federal Reserve announced 25 bps rate cut on Wednesday night.
The overall market capitalisation of the global crypto market rose as much as 2 per cent.
As anticipated, the US Federal Reserve lowered interest rates by 25 basis points and signaled 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, signaling 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 remains in split while some argue the cut was already priced in, optimism still point to Bitcoin regaining momentum toward the $120,000 mark if catalysts align,” said Avinash Shekhar, Co-Founder&CEO,Pi42.
Meanwhile, Ethereum also remained steady after the FOMC meeting, surged nearly 2 per cent to move past $4,600 level on Thursday.
“Ethereum, meanwhile, 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.
Other altcoins like XRP and Dogecoin also witnessed stronger reactions after the announcement, suggesting capital rotation beneath the surface.
Where’s it 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.
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