Bitcoin Holds Steady After Fed Rate Cut
Bitcoin traded around $116,200 on September 18, 2025, following the U.S. Federal Reserve’s widely expected 0.25% rate cut. Despite anticipation, BTC price action remained largely flat in the immediate aftermath. Six hours later, Bitcoin briefly touched $117,000 before cooling to $116,600, according to CoinGecko. While markets had priced in the cut, analysts suggest the groundwork may be set for a longer-term bullish trend.
Powell Signals More Rate Cuts Ahead
Federal Reserve Chair Jerome Powell emphasized challenges from both persistent inflation and weakening employment. He described the cut as a “risk-management move” while noting that downside risks to jobs had increased.
Powell highlighted that higher tariffs were pushing up prices in select categories, but overall conditions justified easing. His remarks suggested that more cuts could follow this year, which analysts believe could fuel Bitcoin demand as investors seek alternatives.
Analysts See Positive Long-Term Outlook
Market observers remain optimistic that Bitcoin will benefit from easing monetary conditions. Ira Auerbach, former head of digital assets at Nasdaq, argued that easier financial conditions should broadly support crypto.
Gerry O’Shea of Hashdex described BTC’s initial reaction as muted but noted that corporate treasuries and ETFs could provide momentum. With rate cuts expected to continue, analysts see potential for Bitcoin to test new all-time highs before year-end.
ETF Inflows Signal Growing Institutional Demand
Bitcoin ETFs recorded their strongest inflows since July, adding over 20,600 BTC in just one week, per K33 Research. U.S. spot products accounted for nearly all inflows, pushing combined holdings to a record 1.32 million BTC. BlackRock, Fidelity, and Ark Invest led the surge, pulling in over $2 billion collectively. Strong ETF inflows underline institutional conviction in Bitcoin as an asset, reinforcing the bullish case amid monetary easing.
Risk Assets React Cautiously to Fed Cut
Beyond crypto, traditional equity markets displayed muted enthusiasm. The S&P 500 and Nasdaq both dipped slightly after the announcement. Risk assets had already rallied in the days leading up to the Fed decision, limiting further upside.
Still, Bitcoin managed a modest 2% weekly gain. Analysts suggest that while immediate reactions were tempered, broader financial easing could unlock new momentum across both crypto and equities.
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Median Projections Suggest More Easing Ahead
According to Fed projections, rates could fall to 3.6% by the end of 2025, down from the current 4.25%–4.50% range. Projections also show declines to 3.4% in 2026 and 3.1% in 2027. Powell stressed that forecasts remain data-dependent and not locked into a preset path. These outlooks reinforce expectations for continued monetary easing, a trend that historically benefits Bitcoin as a hedge against fiat devaluation.
Bitcoin Positioned as Hedge Against Devaluation
Stephane Ouellette, CEO of FRNT Financial, described Bitcoin as a clear alternative to fiat devaluation cycles. He noted that while adoption may not surge overnight, investors will gradually allocate more to BTC to safeguard purchasing power. This narrative resonates as inflationary pressures persist and traditional assets face uncertainty. As analysts weigh the Fed’s trajectory, Bitcoin’s resilience above $116,000 underscores its evolving role as both a hedge and growth asset.
