Fed Cuts Rates – Bitcoin Reacts Like a Disinterested Party Guest

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Well, well, well, it seems the cryptocurrency market didn’t quite get the memo. Despite the Federal Reserve’s rate cut, which sent Wall Street into a tizzy, Bitcoin and its merry band of altcoins have chosen the noble path of indifference. No wild celebrations, no dramatic price surges-just a polite shrug. How utterly predictable.

Analysts over at Santiment, bless their hopeful little hearts, had forecasted that a rate cut larger than 25 basis points (bps) would set off a cryptocurrency bonanza. But a smaller cut, they warned, would likely lead to a market panic. Guess what? Neither of those exciting scenarios has materialized. Yet, we’re told it’s “too early to tell.” Yes, yes, darling, the suspense is absolutely killing us.

And the Fed Cuts Rates-Finally

On Wednesday, the Federal Reserve decided to be a bit generous and cut interest rates by a modest 25bps, bringing the benchmark range to 4.00%-4.25%. This, of course, marks the restart of the American easing cycle-after what can only be described as a rather tiresome hiatus.

Fed Chair Jerome Powell, ever the picture of calm, explained that the rate cut wasn’t due to any miraculous disappearance of inflation risk. Oh no, dear. Rather, it’s because economic growth and job creation are looking a tad weaker. Not exactly the stuff of legends, but it’ll do.

Powell, ever cautious, mentioned that the conditions weren’t quite ripe for a larger 50bps cut. But the market-oh, the market-is whispering that more cuts are on the horizon, with October and December’s FOMC meetings possibly delivering cuts as deep as 50bps. Will this be the moment the markets finally throw a proper party? Time will tell, darling, time will tell.

Will Bitcoin Have a Fling with a Rally?

Now, let’s address the burning question: Will Bitcoin finally take the plunge into the high seas of price action in the coming months? According to analysts, there’s a moderate level of risk in buying Bitcoin now. It might just have more room to grow-so, you know, go ahead and add a few more coins to your portfolio, if you’re feeling lucky.

In the last 30 days, active BTC wallets have made a modest 3.5% profit. Oh, and the last year? A dazzling 16.1%. If everything goes according to plan, Bitcoin might just be heading towards the stratospheric price of $120,000. Analysts are practically drooling over the prospect of even more substantial profits. Meanwhile, the rest of us are just trying to keep up.

And in case you’re wondering, Santiment analysts noticed a significant surge in social dominance during the FOMC meetings this week. Yes, Bitcoin’s social chatter was louder than the FOMC itself. Now, that’s quite the achievement, isn’t it? A spike not seen since April when Trump’s tariffs had the financial markets in a full-blown chokehold. Oh, the good old days.

“What does this huge social spike mean? Well, traders were particularly keyed in on this one, considering it would (and turned out to) be the first cut in nearly two years. And unlike the dozen or so past FOMC meetings, this one was finally the one that was anticipated to result in a change,” Santiment chirped, with their usual flair.

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2025-09-21 17:50