Hi, I'm John. Today I'll explain in simple terms the relationship between Bitcoin price fluctuations and the Fed's interest rate cuts.
Hello everyone! I'm John, a fun explorer of the world of blockchain and cryptocurrency. In this article, I'll explain the impact of the Federal Reserve's (Fed) interest rate cut on September 17, 2025, on Bitcoin in a way that's easy to understand even for beginners. I hope you'll understand the big picture first, so you can continue reading with confidence.
The reason why this topic is important now is that the Fed's interest rate cut will have a major ripple effect on global financial markets. Bitcoin is currently in a volatile market environment, and these macroeconomic movements are directly linked to its price. Understanding these factors will enable intermediate traders in particular to make smarter decisions. If you are considering opening an account for the first time, it is a good idea to first understand the tips for choosing an exchange that will not disappoint you. Here is an easy-to-understand comparison of major services:How to Choose and Compare Cryptocurrency Exchanges for Beginners.
What is a Fed rate cut? Let's review the basics
The Federal Reserve (Fed) is an institution that acts like the central bank of the United States and adjusts interest rates to stabilize the economy. Lowering interest rates is a policy that makes it easier for companies and individuals to borrow money, thereby stimulating economic activity.
In the past, the Fed made a significant interest rate cut during the COVID-9 pandemic in 2020, causing Bitcoin prices to soar. Currently, a 25 basis point (0.25%) interest rate cut will be implemented on September 17, 2025, bringing the base rate to 4.00%-4.25%. This was done in response to a softening labor market and economic uncertainty. Further interest rate cuts are expected in the future, which could lead to increased market liquidity.
Bitcoin Price Impact: Past and Present
Bitcoin is an asset that reacts sensitively to the Fed's policies. In the past, when interest rates were cut, investors shifted their funds to riskier assets, creating a "risk-on" trend, which tended to push prices higher. For example, when expectations of an interest rate cut in 2023 grew, Bitcoin rose in value by tens of thousands of dollars.
Currently, immediately after the interest rate cut on September 17, 2025, Bitcoin temporarily rose to around $118,000, but then fell due to profit-taking selling, trading at $112,623. As of September 23, there are reports that it has recovered to above $117,000, but fluctuations continue. Such movements indicate that market sentiment (investor psychology) is unstable.
Latest Price Analysis: What is the Risk of a $105,000 Retest?
According to reliable sources, Bitcoin lost its key support level of $115,000 after the rate cut, increasing the risk of a retest of the $105,500 area.
Currently, the price is trading around $114,000, and some believe that the impact of the Fed's decision on the market is fading. However, caution is required due to the large short-term volatility (price fluctuation range). Further interest rate cuts could put upward pressure on the price again, but a decline could also occur depending on economic indicators.
Risks and countermeasures: Key points for safety
Bitcoin price fluctuations always involve risk. Macro factors, such as the Fed, are particularly unpredictable and can lead to sudden drops. When considering investing, please be sure to act responsibly and diversify your investments. This article is intended for informational purposes only and does not constitute investment advice.
When it comes to security, choosing the right exchange is important. From the perspective of legal compliance, we recommend using a business registered in Japan. We have summarized some tips for minimizing risk in bullet points below. Please feel free to use them as a reference.
- Start small and get used to market movements.
- Use a trusted wallet (a digital wallet that stores your cryptocurrency) and be sure to set up two-factor authentication.
- Monitor the news regularly and mark Fed announcement dates on your calendar.
- Use stop-loss orders (automatic sell settings) to limit losses.
Outlook: What's next for Bitcoin?
Historical data suggests that Bitcoin tends to rise in the long term during interest rate cut cycles. Currently, expectations are growing for further Fed interest rate cuts, and some predict a recovery to $120,000-$125,000. However, any deterioration in inflation or labor market conditions could put downward pressure on Bitcoin.
Looking ahead, a further 75 basis points of interest rate cuts are expected by the end of 2025, and a scenario in which Bitcoin's price could reach $150,000 is being discussed. However, we should base our decisions on official economic indicators rather than speculation.
Summary: John's thoughts
What did you think? The Fed's interest rate cut is an opportunity for Bitcoin, but a careful approach is essential. If you are unsure which company to choose, compare fees, the stocks available, and ease of use of the UI. For a detailed comparison,click here.
As John, I'm excited to follow these macro events, but let's get the basics down and have fun learning. I wish you all the best in your crypto life!
This article has been compiled and fact-checked by the author, based on the following original articles and public information:
- Bitcoin risks a $105k retest after losing key support following Fed rate cut
- BTC Price News: Fed Cuts Interest Rate in 'Risk Management' Move as Bitcoin Eyes Possible Upside
- Fed rate decision September 2025
- Bitcoin price regains $117K as Fed rate cut lifts sentiment
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