Bitcoin: In today’s digital age, when the world’s attention is focused on financial markets, Bitcoin has once again captured everyone’s attention. This is an exciting time for cryptocurrency enthusiasts. On September 18, 2025, Bitcoin reached a high of $118,000, thanks in large part to the US Federal Reserve’s 25-basis-point interest rate cut. This move not only brought relief to investors but also created a positive environment in the crypto market.
This surge in Bitcoin and other crypto tokens led to a nearly 2 percent increase in the overall crypto market capitalization. The prospect of a Fed interest rate cut and the possibility of two more upcoming cuts further strengthened investor confidence. Thus, a wave of hope swept the market.
Fed’s Rate Cut and Bitcoin’s Reaction
As experts had anticipated, the US Federal Reserve announced a 25-basis-point rate cut. This move fueled Bitcoin’s slow but steady rise. According to Avinash Shekhar, co-founder and CEO of Pi42, “The crypto market has absorbed this Fed rate cut very calmly. While there was initial volatility, Bitcoin is now slowly moving upwards. Investors and traders are both remaining cautious at this time, but if the right factors come together, Bitcoin could move towards $120,000.”
Ethereum also maintained its strong position following the FOMC meeting, gaining nearly 2 percent to surpass the $4,600 level. Other altcoins, such as XRP and Dogecoin, also reacted positively, indicating increasing capital inflows into the market. Shekhar also noted that “Ethereum is poised to reach new highs, while XRP is targeting $3.66 due to the prospects of ETF approval.”
Bitcoin’s Near-Term Future
Bitcoin is currently trading in a critical range between $117,138 and $119,500. According to Sumit Gupta, co-founder of CoinDCX, “A clear breakout above this range could propel Bitcoin to new all-time highs. However, investors should exercise caution as long positions below this level are at risk of liquidation, as the Coinglass liquidation heatmap shows.”
Gupta further added, “If Bitcoin rises sharply above $118,000, overleveraged shorts could be liquidated, triggering a new bullish phase. This time is crucial for Bitcoin, as the next major jump could be determined right now.”
Cautions and Expectations for Investors
Although the Fed’s rate cut has fueled enthusiasm among crypto investors, experts say the market is still trading cautiously. Only signals from the central bank’s October meeting will reveal whether the recent rate cut signals a permanent policy change or merely a temporary move.
Investors and traders are now closely monitoring the Fed’s next move and what will determine Bitcoin’s next major move. Meanwhile, it’s essential to maintain a balance between market sentiment and technical signals.
Bitcoin’s crossing the $118,000 mark has raised new hopes for investors. However, its future direction will depend entirely on market conditions and investor reactions. Investors should avoid making hasty decisions based on emotions and should only invest after consulting experts.
Disclaimer: This article is for educational purposes only. The views and recommendations expressed here are those of individual analysts or brokerage companies, not Mint or the author. Consult a certified expert before investing.
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