Bitcoin Trades Above $117,000 After Fed Rate Cut
Bitcoin (BTC) rose above $117,000 on Thursday after bouncing off key support. The price rebound followed the US Federal Reserve’s decision to cut interest rates by 25 basis points (bps) on Wednesday. The Fed also hinted at two more possible rate cuts this year. This news boosted risk appetite across financial markets, including cryptocurrencies.
The Fed’s latest economic forecast shows interest rates may average 3.6% by the end of 2025, lower than the previous 3.9% estimate. Rates are expected to fall further in 2026 and 2027. This dovish outlook encouraged investors to take more risks, helping Bitcoin’s price gain momentum.
Traders are now watching US economic data releases, such as Weekly Initial Jobless Claims and the Philly Fed Manufacturing Survey, for further market direction.
On-Chain Data Shows Retail Investors Leading the Market
Data from CryptoQuant reveals that Bitcoin trading on Binance lacks large whale inflows. Instead, many small wallets are active, suggesting retail investors are driving the market.
- Wallets holding 0 to 0.001 BTC hold about 97,000 BTC in total.
- Wallets holding 0.001 to 0.01 BTC contain approximately 719,000 BTC.
This pattern indicates many small investors are accumulating Bitcoin. This steady buying could support a gradual rise toward $120,000. However, traders should be cautious, as sudden whale activity could cause price swings.
Institutional Bitcoin ETF Flows Show Minor Outflows
Bitcoin spot Exchange Traded Funds (ETFs) saw a small outflow of $51.28 million on Wednesday. This ended a streak of inflows since September 8. The outflows were minor, as institutional investors held back before the Fed’s rate decision. Market watchers will monitor these flows for signs of changing institutional interest.
Bitcoin Price Outlook
Bitcoin found support near $116,000 last week and has since moved above $117,000. The price faced resistance around $116,000 but broke through early this week. The Relative Strength Index (RSI) is at 61, showing bullish momentum. The MACD indicator also shows a positive trend since September 6.
If Bitcoin keeps rising, it may test the key psychological level of $120,000 soon. However, if the price falls below $116,000, it could drop further toward the 50-day Exponential Moving Average (EMA) near $113,800.
