Hi, I'm John. Today I'll briefly explain how the FOMC's interest rate cut will affect Bitcoin prices.
Hello everyone! I'm John, a daily blogger dedicated to sharing the fascinating world of blockchain and cryptocurrencies. Today, I'll be discussing how U.S. monetary policy will affect the price of Bitcoin (BTC), including the latest news. We'll start with the basics, and then follow real-time trends in 2025.
The reason why this topic is important now is that the decisions of the FOMC (Federal Open Market Committee, an important meeting where the US Federal Reserve Board decides monetary policy) have ripple effects on the global economy and significantly affect the price of risky assets like Bitcoin. For example, if interest rates fall, the flow of money will become more active, increasing the likelihood that investors will allocate their funds to Bitcoin. If you are new to cryptocurrencies, we recommend starting by opening an account, which will serve as the foundation for trading. Here is a detailed summary for beginners on how to choose major exchanges and comparison points:How to Choose and Compare Cryptocurrency Exchanges for Beginners.
In the past, the FOMC's interest rate policy has increased Bitcoin's volatility (the magnitude of price fluctuations), but now that the 2025 interest rate cut cycle is in full swing, attention is focused on future price trends. Let's take a look at this step by step.
What is the FOMC? Let's review the basics
The FOMC is a committee chaired by the Federal Reserve Board (FRB) that adjusts interest rates based on economic conditions. Interest rate cuts make borrowing easier and stimulate the economy. For Bitcoin, interest rate cuts tend to indirectly boost prices by encouraging stocks and other risky assets to rise.
In the past, Bitcoin prices have soared following large-scale interest rate cuts, such as those during the 2020 pandemic. We are now in 2025, and are transitioning from an inflation control phase to an interest rate cut phase. Further interest rate cuts are expected in the future, which will influence market sentiment (investor psychology).
The relationship between past FOMC interest rate cuts and Bitcoin
Looking back at the past, FOMC interest rate cuts have had a positive impact on Bitcoin prices. For example, after the 2023-2024 interest rate hike cycle, Bitcoin rallied to over $10 when expectations of interest rate cuts rose. This was because a low interest rate environment made it easier for money to flow into the cryptocurrency market.
However, not all rate cuts lead to immediate price increases, and the overall state of the economy is key. Currently, with the 2025 rate cuts just beginning, markets remain cautious.
2025 Update: September Rate Cut and Bitcoin's Reaction
On September 17, 2025, the FOMC lowered the base interest rate by 0.25%, setting it at 4.00% to 4.25%. This was the first interest rate cut since December 2024, and attention was focused on the Bitcoin market. However, according to reports from Forbes and CCN, the market reaction was muted, and Bitcoin prices did not rise sharply, but rather showed a temporary downward trend.
Currently, Bitcoin is trading around $110,000, maintaining a key support line (a level that supports the price). For example, CoinDesk's analysis points out that long-term fluctuations in bond yields could offset Bitcoin's rise. Further interest rate cuts will likely be discussed at the FOMC meetings in October and December, which will likely affect the price.
Outlook: What will Bitcoin price do?
Going forward, the key will be whether the FOMC will cut interest rates further within 2025. According to Yahoo Finance and Bitcoin Ethereum News, the market is predicting a 0.25% interest rate cut in October with an 87.7% probability, and if this happens, it could be a factor in pushing up the price of Bitcoin. However, FOMC members have differing views, and persistently high inflation could delay the pace of interest rate cuts.
Posts on X (formerly Twitter) also show that investor sentiment is optimistic, but many are wary of high volatility. If Bitcoin can maintain above the $109,500 EMA (exponential moving average, an indicator that is a weighted average of past prices), a scenario in which the upward trend will continue is conceivable.
Risks and countermeasures: working to be safe
Bitcoin investments are inherently subject to the risk of price fluctuations. FOMC decisions can cause sudden market fluctuations, so start with a small amount. Invest at your own risk and seek expert advice. Virtual currencies are subject to legal regulation, so in Japan, it's important to follow the guidelines of the Financial Services Agency.
In terms of security, choose a trustworthy exchange and be sure to set up two-factor authentication. It's important to learn from past hacking cases and not neglect to take precautions.
- Price fluctuation risk: When the FOMC announces, check the news in real time and avoid emotional trading.
- Regulatory risk: As of 2025, cryptocurrency tax systems will be applied in Japan, so be sure to declare any profits.
- Security measures: Use strong passwords and beware of phishing scams.
Tips for using it: Easy for beginners to try
The key to making the most of FOMC news is to follow reliable media. For example, regularly reading articles from CoinDesk or Forbes will help you understand market trends. You can now set price alerts in the app, so feel free to try it out.
As interest rates continue to fall, Bitcoin's use cases (practical examples) will likely increase in payments and diversification of investment portfolios. Why not start by getting used to demo trading?
John's summary and thoughts
This time, we looked at the relationship between FOMC interest rate cuts and Bitcoin prices, from the past to the latest situation in 2025. While interest rate cuts create opportunities, they also bring uncertainty to the market. We will continue to provide useful information so that everyone can enjoy cryptocurrency safely. If you are interested, start with a reliable exchange! If you are unsure which company to start with, compare fees, the stocks handled, and ease of use of the UI. For a detailed comparison,click here.
This article has been compiled and fact-checked by the author, based on the following original articles and public information:
- FOMC Rate Cuts Loom as Bitcoin Holds Above $109,500 EMA
- Crypto Markets Fail To Surge Following Fed Rate Cut Announcement
- Fed's Sept. 17 Rate Decision: What A 0.25% Rate Cut Really Means and What Comes Next
- Bitcoin (BTC) Week Ahead: Bulls Bet on Fed Rate Cuts to Drive Bond Yields Lower, but There's a Catch
- FOMC Meeting: What Does the Federal Reserve's September Rate Cut Mean for Bitcoin?
- Federal Reserve Rate Cut Expectations Impact Crypto Markets
How to choose and compare cryptocurrency exchanges for beginnersclick here .