Sep 18, 2025
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Fed Cuts Interest Rate by 0.25%, Bitcoin Hyper Presale Surpasses $16.5M
The US Federal Reserve has reduced the key interest rate by 0.25 points, effective at 2 PM ET. Chair Jerome Powell described the cut as a risk management strategy, suggesting further reductions may be necessary.
- Bitcoin showed a slight decline to $116.2K following the announcement, indicating trader caution.
- Bitcoin is currently trading sideways, with investors seeking clearer signals from the Fed.
- The rate cut could potentially trigger a bullish scenario for Bitcoin, reminiscent of past cycles where lower rates increased risk appetite.
- Historical data shows significant Bitcoin price surges after previous rate cuts, such as a 1,600% increase in 2020.
- Lower rates can make credit more affordable, leading to greater investment flows into cryptocurrencies.
- Bitcoin's fixed supply positions it as a hedge against inflation, attracting capital during inflationary periods.
As the Fed's policies unfold, analysts are optimistic about Bitcoin's performance, keeping a close watch on support and resistance levels. The decision could enhance market confidence, potentially benefiting low-cap coins linked to Bitcoin.