Despite the Federal Reserve's rate cut, Bitcoin surges past $117K, as ETF inflows moderately decline and exchanges notice increasing spot selling.
In the dynamic world of cryptocurrencies, the past 48 hours have seen some intriguing developments. Here's a rundown of the key points that have caught our attention.
Firstly, there have been three significant inflows of over $25 million per block into exchange deposits, indicative of partial spot selling during the recent market rally. This suggests that some investors may be taking profits, but the overall sentiment remains somewhat cautious.
Meanwhile, the traditional financial sector has also been making waves. On September 17, 2025, the Federal Reserve lowered its interest rate by 25 basis points to 4.25%. The leader of the Federal Reserve, Jerome Powell, announced this decision, signalling a continued effort to support economic growth.
The cryptocurrency market's response to this interest rate cut has been mixed. While Bitcoin ETFs experienced a net outflow of $51.28 million on September 17, marking the first outflow after seven days of inflows, Ethereum ETFs saw a net outflow of approximately $1.89 million on the same day. This could suggest a shift in investor preferences or strategies.
Derivatives have shown a decline in BTC and SOL perp open interest, indicating less speculative long exposure. On the other hand, ETH, XRP, and BNB open interest has risen, suggesting reallocations within leverage pools.
Interestingly, Bitcoin's price moved above $117,000 intraday, but $118,000 remains a dominant liquidation and resistance zone for Bitcoin. This suggests that a significant resistance barrier still exists at this level.
Lastly, the Federal Reserve's FOMC guidance has been dovish, and markets predict a 94% chance of a stock market today interest rate cut in October. This could potentially have further implications for the cryptocurrency market in the coming weeks.
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