- The Fed’s decision on a 25 bps rate cut impacts markets significantly.
- Bitcoin price reacts to rate cut at $116,487.28.
- Market adjusts as investors look for guidance from Jerome Powell.
The Federal Reserve is set to announce a 25 basis point interest rate cut at 02:00 AM Beijing time, with Chairman Jerome Powell addressing the press shortly after.
This policy shift is closely watched as it may influence cryptocurrency market dynamics and investor sentiment amid ongoing global economic uncertainties.
Powell’s Rate Cut Stirs Market and Crypto Reactions
The Federal Reserve, led by Chairman Jerome Powell, officially announced a 25 basis point interest rate cut. This decision, anticipated by investors, aims to address ongoing economic conditions. President Donald Trump has been an outspoken advocate for substantial rate cuts, expressing expectations for aggressive monetary easing. The market welcomed the move, with equities gaining modestly. However, warning signals flashed for potential volatility if Powell’s press conference hints at more hawkish tones or economic projections shifts.
This reduction signifies a policy shift, intended to support ongoing recovery efforts and aligns with Trump’s directive for significant cuts. The Federal Open Market Committee highlighted persistent challenges, including inflation pressures and labor market developments, which influenced their decision-making.
“I think you have a big cut. It’s perfect for cutting.” — Donald Trump, President, United States
Bitcoin Price Surges with $116K Milestone Amid Fed Policy Shift
Did you know? BTC previously surged post-Fed rate cuts in 2019 and 2020, indicating potential upward trends in current market environments.
Bitcoin’s current stats, as of September 17, 2025, reveal a price of $116,487.28 with a market cap of approximately $2.32 trillion. Trading volumes reached $46.76 billion, up by 5.28%. Bitcoin has seen a 10.94% increase over 90 days, as per CoinMarketCap’s latest data.
Analysts from Coincu highlight the likeliness of increased liquidity in the digital assets sector spurred by rate cuts, mirroring previous patterns. Potential regulatory shifts may emerge, influenced by economic adjustments, guiding the evolution of financial frameworks surrounding digital currencies and enhancing investor confidence.
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Source: https://coincu.com/markets/federal-reserve-announces-rate-cut/