Bitcoin Sticks to $117K, Moves Higher Amid Initial Volatility Post US Fed cut

Bitcoin, the most precious digital currency in the world, surged around 1% and tapped $117K amid the US Fed’s 25-basis-point rate cut. The United States Federal Reserve implemented its first rate cut of 2025 and lowered the federal funds rate by 25 basis points to a 4.00% – 4.25% range on September 17, 2025. Analysts opine that BTC’s price may rise to its all-time high if it breaks the key resistance level at $117K, and pointed out that Bitcoin is regaining its momentum toward the $120,000 price point. 

“The crypto market is digesting the Fed’s 25 bps rate cut with surprising calm, says Avinash Shekhar

The Federal Reserve issues an FOMC statement on September 17, 2025, deciding to lower the target range for the federal funds rate by ¼ percentage point to 4.00 – 4.25%. The Federal Reserve official press release stated that the Committee sought to achieve maximum employment and inflation at the rate of 2% over the longer run. It added that uncertainty about the economic outlook remained elevated. The Committee was attentive to the risks to both sides of its dual mandate and judged that downside risks to employment had risen. It would continue reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities. The Committee was strongly committed to supporting maximum employment and returning inflation to its 2% objective. 

The cryptocurrencies and the entire crypto market have increased by a small percentage over the past 24 hours after the FOMC statement. Crypto experts opine that the positive momentum was mainly fueled by the positive corporate news and expectations of a Fed interest rate cut. 

Bitcoin was reportedly traded above $117K on Wednesday morning, and it has been continuing its upward momentum. Avinash Shekhar, Co-Founder & CEO of Pi42, claimed that the crypto market was digesting the Fed’s 25 bps rate cut with surprising calm, as Bitcoin was moving upwards slowly despite initial volatility. He mentioned that traders remained split while some argued that the cut had already been priced in, but optimism still pointed to Bitcoin regaining momentum toward the $120,000 mark if catalysts aligned. He also added that Ethereum, meanwhile, was flashing strength as bulls were eyeing fresh record highs, while XRP was fueled by optimism around an ETF approval that could see it targeting $3.66. 

Bitcoin Steadies at $117K with Rate Cut: Will it Move Higher?

The Federal Reserve rate cut has helped Bitcoin to stay steady at the $117 price point. The FED has already given possibilities of potential rate cuts in 2025, so it would further push cryptocurrencies to display a balanced market performance. Some crypto analysts believe that a confirmed breakout above key resistance at $117,800 could lead to a near-term target of $120,000 or slightly higher. 

Crypto analysts discussed on X that, on the other hand, Bitcoin spot ETFs had recorded net inflows of 2,544 BTC on Wednesday, valued at approximately $295 million. They noted that BlackRock’s IBIT had accounted for the largest inflow on Sept. 17, and added that these institutional inflows provided structural support to Bitcoin despite the short-term price weakness. 

Avinash Shekhar also commented that, interestingly, despite neutral price action in Bitcoin, altcoins like XRP and Dogecoin were showing stronger reactions, suggesting capital rotation beneath the surface. He mentioned that overall, the market was trading cautiously, balancing macro policy signals with sector-specific optimism, and that the next move hinged on how traders would interpret Powell’s remarks in the coming sessions. 

Disclaimer: All investments, including cryptocurrencies, carry risk. The information provided in this article is for informational purposes only and does not constitute financial advice.

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