According to @BullTheoryio, the Federal Reserve cut the policy rate by 25 bps and signaled quantitative tightening will end on December 1, implying cheaper funding and an end to balance sheet runoff, which historically weighed on risk assets and crypto liquidity (source: @BullTheoryio). According to @BullTheoryio, Chair Powell framed the move as risk management and said the overall outlook has not materially changed since September, with firm employment and easing but above-target inflation (source: @BullTheoryio). According to @BullTheoryio, Powell stated no decision has been made about a December cut and noted strongly differing views within the committee, reducing odds of a near-term easing cycle acceleration (source: @BullTheoryio). According to @BullTheoryio, Powell added that higher tariffs are lifting some goods prices but likely temporarily, and policy remains modestly restrictive, indicating the Fed wants flexibility rather than a pre-committed cutting path (source: @BullTheoryio). According to @BullTheoryio, the Fed ending QT means the balance sheet will stop shrinking, bank reserves should stabilize, and credit conditions may loosen, a backdrop that typically improves liquidity for risk assets including BTC and altcoins (source: @BullTheoryio). According to @BullTheoryio, consumer spending is slowing—especially among lower-income households—and the Fed is monitoring AI-driven layoffs and data center investment, factors that can influence growth, inflation, and liquidity-sensitive assets (source: @BullTheoryio). According to @BullTheoryio, the key trading takeaway is that the tightening cycle appears over, liquidity is turning, and capital rotation could start favoring Bitcoin and altcoins as conditions stabilize, though the path may depend on December FOMC outcomes and incoming data (source: @BullTheoryio).

According to @BullTheoryio, markets have priced a 99.9% chance of a 25 bps Fed rate cut at 2 pm ET, so trading focus shifts to the statement language, the QT decision, and Powell’s tone, source: @BullTheoryio. A dovish statement that highlights rising growth risks would imply additional cuts ahead and likely push 2-year Treasury yields lower while weakening the dollar, a setup that supports risk assets including BTC, source: @BullTheoryio. If the Fed labels the move a mid-cycle adjustment, upside could be limited and markets may consolidate or pull back, source: @BullTheoryio. Markets also expect the Fed to announce the end of QT, signaling a halt to balance-sheet reduction and an early liquidity inflection that has historically fueled risk-on behavior across tech, equities, and especially Bitcoin, source: @BullTheoryio. If Powell acknowledges slower growth or expresses confidence that inflation is under control, traders may see lower bond yields, a softer dollar, and a rally in equities and crypto; a cautious tone without commitment to future cuts would likely keep markets in consolidation, source: @BullTheoryio.

According to @BullTheoryio, Bitcoin (BTC) is tracing gold’s 2024 breakout by compressing in a multi-year ascending wedge and approaching a similar breakout point. According to @BullTheoryio, gold has cooled and is down about 9 percent from its peak, a zone that historically precedes profit rotation from the slow hedge gold into the high-beta hedge BTC. According to @BullTheoryio, the Federal Reserve is preparing another 25 bps rate cut while quantitative tightening is ending, turning liquidity back on and matching the macro mix that fueled prior major BTC rallies. According to @BullTheoryio, unlike gold’s defensive move driven by debasement fears and central bank buying, the next BTC leg is positioned as an offensive move driven by liquidity, adoption, and institutional demand. According to @BullTheoryio, this rotation pattern appeared in 2020 and is setting up again now, implying a breakout and momentum trade bias favoring BTC as liquidity inflects.

According to @ReutersBiz, U.S. major stock indexes closed at record highs after the Federal Reserve cut interest rates by 25 basis points, while Intel rose after Nvidia decided to build a stake in the company; source: Reuters Business. For traders, the combination of Fed easing and renewed AI equity momentum are key cross-asset signals to monitor for liquidity and risk appetite that can influence BTC and ETH; source: Reuters Business.

According to @MI_Algos, the Federal Reserve cut rates by 25 bps and the first 24 hours showed a mixed crypto response with a macro bullish lean, relevant for BTC traders assessing directional conviction. Source: @MI_Algos on X, Sep 18, 2025. Some expected the cut to be rocket fuel for price action, but @MI_Algos warned it could become a sell the news event as evidenced by the uneven reaction so far. Source: @MI_Algos on X, Sep 18, 2025. The analysis outlines two trade paths to monitor: a high tide raises all boats rally lifting BTC and altcoins, or a short term BTC exit pump that redistributes liquidity into alts. Source: @MI_Algos on X, Sep 18, 2025. The latter scenario could channel more capital to altcoins and fuel an Alt Season type advance before BTC attempts its next leg up, guiding rotation and risk management strategies. Source: @MI_Algos on X, Sep 18, 2025.

According to Lookonchain, after the Federal Reserve cut rates by 25 bps, OTC wallet 0xd8d0 spent 112.34M USDC to purchase 25,000 ETH at an average price of $4,493 (source: Lookonchain). The address and transaction details can be verified on Arkham Intelligence’s explorer, corroborating the size and execution price highlighted by Lookonchain (source: Arkham Intelligence; Lookonchain).