Fed Cuts Rates by 25 Basis Points! Bitcoin Remains Flat — Is a Crash Looming?

TradingKey – Bitcoin shows little reaction to the Fed’s rate decision. Could this signal an impending price drop?

Early Thursday morning (September 18), the Federal Reserve announced a 25 basis point rate cut. Bitcoin (BTC) briefly dipped below $116,000 before rebounding, but overall price action remained muted.Bitcoin Price Chart – Source: CoinMarketCap

While Bitcoin didn’t rally sharply, it also didn’t suffer a post-news selloff — its resilience is notable. Still, the question remains: can BTC continue to rebound?

On-chain data suggests selling pressure may be easing. On September 17, crypto analyst The DeFi Investor posted on X that “BTC supply on centralized exchanges is at its lowest level in seven years,” indicating reduced availability for immediate sell-offs.

Most importantly, the Fed’s dot plot median now points to a total of three rate cuts this year. That dovish outlook could provide strong support for Bitcoin’s price — and potentially push it toward a new all-time high of $124,000 before year-end.