Fed Rate Cut Brings Cautious Optimism to Bitcoin and Altcoins

The U.S. Federal Reserve has officially cut interest rates by 25 basis points, marking the first step in a renewed easing cycle. The move lowers the benchmark range to 4.00%–4.25%, signaling a shift toward looser monetary policy after a prolonged pause.

While many expected an immediate breakout across the crypto market, Bitcoin and altcoins showed muted reactions. Bitcoin briefly tested resistance near $118,000 but quickly settled back, leaving traders waiting for stronger confirmation of a trend shift.

Despite the lukewarm response, the outlook for the coming months remains favorable. With the Fed hinting at further cuts in upcoming meetings, conditions could align for a stronger rally into the year’s final quarter. Historically, Bitcoin has performed well in periods of monetary easing, and traders are watching closely for a potential move toward the $120,000 milestone.

Data suggests that Bitcoin wallets remain profitable, with average returns of over 3% in the last month and double-digit gains across the year. This resilience, coupled with growing investor attention, sets the stage for volatility as macroeconomic signals develop.

Altcoins also held steady, with most large-cap assets avoiding sharp swings. Market sentiment remains cautious but optimistic, with traders eyeing October and December’s policy meetings as the next major catalysts for digital assets.