Tomorrow (September 18, 2025), the Federal Reserve will announce its interest rate decision, with the market expecting a 25 basis point cut, with a probability of 100%, and a minority predicting a 50 basis point cut. Rate cuts are usually beneficial for cryptocurrencies due to increased liquidity and rising risk appetite. Currently, Bitcoin (BTC) is around $115,000, and Ethereum (ETH) is around $4,500, with market sentiment leaning optimistic.
Impact of interest rate cuts on the crypto market
Enhanced liquidity: Low interest rates weaken the attractiveness of the dollar, leading to inflows into assets like BTC.
Risk assets rebound: History shows that after interest rate cuts, BTC and ETH often enter bull markets, with the market surging after the 2024 rate cut.
Potential volatility: If the Federal Reserve sends hawkish signals, it may trigger a 1%-2% correction.
X platform discussion predicts that due to interest rate cuts, there will be an upward trend in Q4, with BTC possibly testing $135,000, and altcoins like ETH following.
Today's operation suggestions
Buy mainstream coins: Increase BTC holdings at the support level of $114,750; ETH can be bought in batches due to liquidity sensitivity, with positions controlled within 20% of total assets.
Pay attention to altcoins: MNT, IMX, XRP and other ETF-related tokens may rebound first, with limited investment.
Hedge risks: Use call options to capture upward movements, or set stop-loss orders (BTC $110,000-$112,000).
Monitor key points: If BTC breaks through the sell wall at $115,837, the target could be $117,500-$119,000, noting the overbought risk of RSI > 60.
Short-term trading: Buy low and sell high within the day, exercise caution when using leverage.
Risk warning
After rate cuts, a 'sell the fact' correction may occur, with geopolitical or macro data potentially exacerbating volatility. It is recommended to set alerts and pay attention to Powell's speeches. Investments carry risks, and caution should be exercised while consulting professional advisors.
Summary
Today's positioning is recommended to buy BTC/ETH, pay attention to altcoins, and implement hedging strategies to cope with volatility. Interest rate cuts may catalyze a bull market in Q4, stay rational, and wish you successful investments!