Bitcoin Slips After Fed Rate Cut, but Weekly Gains Keep Market Optimistic
Bitcoin Slips After Fed Rate Cut, but Weekly Gains Keep Market Optimistic
On September 19, Bitcoin traded at roughly $116,526, down 0.6% on the day, as investors digested the U.S. Federal Reserve’s latest decision to cut interest rates by 25 basis points. The move, while expected, initially fueled optimism for risk assets—but profit-taking and caution ahead of further economic data kept crypto slightly subdued.
Ethereum slipped by about 1.2%, Solana fell 1.8%, and XRP dropped around 2.7%. Yet, despite the dip, the overall weekly performance for major cryptocurrencies remained positive. Bitcoin is still trading near its recent highs, supported by hopes that additional rate cuts could be on the horizon before the end of the year.
For many traders, this slight pullback represents more of a pause than a reversal. Analysts note that after strong rallies in previous weeks, it’s natural for markets to consolidate. In fact, dips like these often attract new buyers waiting for entry points.
Macro conditions remain the key driver. Lower interest rates reduce the cost of capital and tend to push investors toward higher-yielding or alternative assets—including crypto. The Fed’s decision was interpreted as a cautious step, balancing inflation concerns with the need to support growth.
Looking ahead, Bitcoin’s ability to break and hold above the $116,000–$117,000 range could determine whether the next move is another leg up or a deeper correction. Either way, the market mood remains tilted toward optimism—proof that crypto is increasingly intertwined with global economic policy.