Bitcoin is attempting to stabilize above the $115,000 mark after the U.S. Federal Reserve delivered a quarter-point interest rate cut, setting the federal funds rate between 4.0% and 4.25%. The immediate reaction across crypto markets has been subdued, with investors digesting the central bank’s more cautious outlook. BTC briefly dipped under $115,000 before recovering, with traders eyeing a decisive hourly close above the level.
In its Wednesday statement, the Federal Open Market Committee (FOMC) acknowledged that job creation has slowed, unemployment is edging higher, and inflation remains sticky. The Fed also noted that risks to the labor market are increasing, signaling a slightly more dovish policy tilt.
Updated projections indicate that an additional 50 basis points of rate reductions could arrive by the end of 2025, reflecting the Fed’s growing concern about economic momentum. While reaffirming its commitment to the 2% inflation goal, the committee’s tone leaned toward supporting growth and jobs rather than tightening further.
The vote wasn’t unanimous. Newly appointed Fed Governor Stephen Miran pushed for a larger half-point cut, reinforcing the notion that policymakers may be preparing markets for a deeper easing cycle ahead.
For Bitcoin, however, the response has been muted. The price action has remained mostly sideways, suggesting traders are cautious. Many are weighing the Fed’s longer-term easing bias against persistent inflation risks and global market uncertainty.
Short-Term Outlook for BTC
Market strategist Nic Puckrin noted that the Fed’s move may already have been priced in, opening the door to a potential “sell the news” scenario. Historically, lower interest rates benefit risk assets, but optimism can fade quickly if traders see limited near-term catalysts.
Open interest in Bitcoin futures spiked immediately after the announcement, pointing to leveraged bets on volatility. At the same time, spot trading activity has continued to decline, showing a lack of fresh demand from buyers. This divergence highlights that much of the current price movement is being driven by derivatives rather than spot accumulation—raising the risk of sharp moves if leveraged positions begin to unwind.
Overall, while the long-term macro backdrop favors Bitcoin under an extended easing cycle, the short-term picture remains uncertain and prone to volatility.
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