{"id":119010,"date":"2025-09-19T00:30:00","date_gmt":"2025-09-18T20:30:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=119010"},"modified":"2025-09-19T01:34:30","modified_gmt":"2025-09-18T21:34:30","slug":"after-feds-rate-cut-bitcoin-holds-steady-eyes-long-term-gains","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/after-feds-rate-cut-bitcoin-holds-steady-eyes-long-term-gains\/09\/19\/market-updates\/","title":{"rendered":"Bitcoin Holds Steady, Eyes Long-Term Gains After Fed&#8217;s Rate Cut"},"content":{"rendered":"\n<p>On September 17, 2025, the Federal Reserve cut interest rates by 0.25% to 4%-4.25%, a move Chair Jerome Powell called a &#8220;risk management cut&#8221; amid cooling inflation (2.9% in August) and a softening jobs market (22,000 nonfarm payrolls). Markets, having anticipated this, showed mixed reactions.<br><br><strong>Bitcoin&#8217;s Response<br><\/strong><br>Bitcoin, trading at $117,417 on September 19 (up 0.81% daily), remained stable with a $2.34 trillion market cap and $53.5 billion trading volume. Despite a dip to $115,000 post-announcement, it recovered to $117,240 by September 18, gaining 3.04% weekly and 25.82% year-to-date. However, September&#8217;s historical volatility and the $124,517 all-time high (5% away) temper expectations. Unlike the 2020 cuts sparking a 300% surge, this cut supports steady institutional inflows for Bitcoin&#8217;s 19.92 million circulating supply without overheating.<br><br><strong>Liquidity Boost and Risks<br><\/strong><br>Lower rates could redirect capital from $7.2 trillion in money market funds to risk assets like Bitcoin, especially with Powell hinting at two more cuts by year-end. Bitcoin\u2019s 0.45-0.9 correlation with stocks suggests potential gains if equities rise. However, stagflation risks\u2014elevated jobless claims and potential inflation spikes\u2014could force rate hikes, threatening bubbles like 2021\u2019s crypto winter. Bitcoin\u2019s $2.47 trillion fully diluted cap requires disciplined capital flows.<br><br><strong>Regulatory Catalyst<br><\/strong><br>On September 18, the SEC approved the Grayscale Digital Large Cap Fund, the first multi-asset crypto ETP, and new listing standards for commodity trusts on Nasdaq, Cboe BZX, and NYSE Arca. These moves legitimize crypto, echoing 2024 ETF approvals that reduced exchange-held Bitcoin by over 1 million BTC. With Bitcoin trading above its 50-day and 200-day EMAs, a breakout to $118,000-$120,000 is possible if dovish Fed signals persist.<br><br>Bitcoin\u2019s muted response reflects market anticipation, not weakness. Regulatory advancements and potential liquidity surges signal long-term upside, but inflation risks demand caution. Investors should monitor FOMC statements and jobs data closely to navigate this evolving landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On September 17, 2025, the Federal Reserve cut interest rates by 0.25% to 4%-4.25%, a move Chair Jerome Powell called a &#8220;risk management cut&#8221; amid cooling inflation (2.9% in August) and a softening jobs market (22,000 nonfarm payrolls). Markets, having anticipated this, showed mixed reactions.Bitcoin&#8217;s ResponseBitcoin, trading at $117,417 on September 19 (up 0.81% daily), &hellip;<\/p>\n","protected":false},"author":13,"featured_media":108592,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[],"class_list":["post-119010","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=119010"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119010\/revisions"}],"predecessor-version":[{"id":119018,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119010\/revisions\/119018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/108592"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=119010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=119010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=119010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}